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ECONOMICS 

Ja  09-20M 


PROSPERITY 

IS  THE  ISSUE. 


ALL  THE  OTHER  QUESTIONS  ARE  SECONDARY. 


SPEECH 


OF 


Hon.  Jacob  H.  Gallinger 


OF  NEW  HAMPSHIRE 


IN  THE 


SENATE  OF  THE  UNITED  STATES, 

Wednesday,  June  25,  1902. 

{Part  *£  Congressional  Record.1 


OUR  FRIENDS  ON  THE  OTHER  SIDE  ARE  LOOKING  FOR  AN 
ISSUE.  THEY  NEED  NOT  WORRY.  THE  ISSUE  IS  LOOKING  FOR  THEM. 
PROSPERITY  IS  THE  ISSUE,  AND  ALL  OTHER  QUESTIONS  ARE  SEC- 
ONDARY. THE  AMERICAN  STANDARD  OF  LIVING,  AMERICAN  MANHOOD 
AND  AMERICAN  HOMES  ARE  BUT  THE  RESULTANTS  OF  REPUBLICAN 
LEGISLATION,  THE  SEQUENCES  OF  A  PROTECTIVE  TARIFF  WHICH 
BROUGHT  TO  US  AND  WILL  CONTINUE  TO  GIVE  US  AN  UNPRECE- 
DENTED AGE  OF  LUXURY,  AN  UNPARALLELED  ERA  OF  PROSPERITY.  * 


The  Senate  having  under  consideration  the  following  resolution,  submitted  by  Mr.  Gallinger 
June  24, 1902:. 

**  Resolved,  That  the  present  phenomenal  prosperity  in  all  lines  of  business  and  industry  in  the 
United  States  is  largely  due  to  the  existing  tariff  law,  and  the  best  interests  of  the  country  demand 
its  continuance  "  — - 


Mr.  GALLINGER  said: 

Mr.  President*  In  less  than  a  month  the 
Dingley  tariff  law  will  have  been  in  operation 
five  years.  It  has  been  for  the  United  States  a 
half  decade  of  the  most  substantial  and  marvel- 
ous accomplishment  in  all  branches  Of  human  en- 
deavor  ever  known  in  the  history  of  not  only 
our  own  country  but  of  the  whole  world. 

Two  years  ago  I  laid  before  the  Senate  a  re- 
sume of  the  calamity  and  misery  caused  by  the 
Wilson-Gorman  tariff  law  and  the  wonderful 
recovery  we  enjoyed  under  the  first  years  of  the 
Dingley  law,"  which  took  its  place.  I  now  pro- 
pose to  call  attention  to  a  more  complete  result 
of  this  tariff  in  the  principal  avenues  of  finance 
and  commerce. 

In  every  way  the  Dingley  tariff  law  has  been 
an  unqualified  success  and  has  more  than  vin- 
dicated the  wisdom  of  its  framers.  President 
McKinley  within  a  few  hours  after  his  first  in- 
auguration called  an  extra  session  of  Congress, 
and  in  his  message  referring  to  the  need  of  a 
new  tariff  law  he  said : 

Congress  should  promptly  correct  the  existing 
condition.    Ample  revenues  must  be  supplied  not 
only  for  the  ordinary  expenses  of  the  Government, 
but  for  the  prompt  payment  of  liberal  pensions 
''■    an<i  the  liquidation  of  the  principal  and  interest  of 
the  public  debt.    In  raising  revenue,  duties  should 
be  so  levied  upon  foreign  products  as  to  preserve 
5$    the  home  market  as  far  as  possible  to  our  own 
-    producers;  to  revive  and  increase  manufactures; 
to  relieve  and  encourage  agriculture;  to  increase 
*,     our  domestic  and  foreign  commerce;  to  aid  and 
develop  mining  and  building,   and  to  render  to 
labor  in  every  field  of  useful  occupation  the  lib- 
eral wages  and  adequate  rewards  to  which  skill 
and  industry  are  ju§tly  entitled. 

On  the  same  day  in  which  this  message  was 
read  Mr.  Dingley,  the  chairman  of  the  Ways  and 
Means  Committee,  introduced  the  new  tariff  bill. 


It  passed  the  House  March  31.  It  passed  the 
Senate  in  an  amended  form  on  July  7,  and  on 
July  24  the  bill,  as  agreed  to  by  the  conference 
committee,  was  signed  by  the  President.  It  is 
probable  that  no  act  of  William  McKinley's  life 
gave  him  more  satisfaction  than  the  signing  of 
this  measure. 

During  these  five  years  we  have  waged  afld 
won  a  war  with  a  foreign  nation,  we  have  had 
strikes  involving  hundreds  of  thousands  of  ^eny 
and  we  have  had  partial  failures  in  several  staple 
crops,  and  yet  we  have  had  the  most  prosperous 
era  in  our  history,  and  to-day  our  commercial 
standing  as  a  nation  excites  the  wonder  of  the 
civilized  world. 

Revenue.—  Let  me  first  call  attention  to 
our  revenue  during  the  past  five  years  as  com- 
pared to  our  revenues  under  the  Wilson-Gorman 
law.  it  will  be  remembered  what  we  had  ah  an- 
nual deficit  during  those  low-tariff  years,  and 
President  Cleveland  during  a  time  of  peace  sold 
bonds  to  the  amount  of  $262,000,000,  which, 
with  interest  to  time  of  maturity,  will  cost  the 
country  half  a  billion  dollars. 

The  following  table  will  show  the  revenue 
under  the  Dingley  law  as  compared  with  that  of 
the  Wilson-Gormau  law: 


Year  ending  June  30— 

Customs  re- 
ceipts. 

Total  re- 
ceipts. 

1895   

$152,158,617 
160,021,752 
176,551,127 

§313,390,075 
326,976,200 
'347,721,905 

1896  

1S97  

162,911,499 



329,362,727 

1898  

149,576,062 
206,128,481 
233,164,871 
288,491,789 
252,000,000 

405,321,335 
515,960,620 
567,240,851 
585,752,067 
550,000,000 

1899  

1900  

1901   . 

1902  

215,872,241 

524,854,975 

p 1^973 


We  have  repealed  war  taxes  to  the  amount  of 
over  $100,000,000,  and  yet  our  revenue  is  more 
than  sufficient  to  meet  the  greatly  increased 
expenses  of  the  Government.  For  the  fiscal 
year  1900  our  surplus  was  $79,527,060;  for 
1901  it  was  $75,713,363,  and  for  1902  it  will 
exceed  $80,000,000,  which  is  quite  a  difference 
as  compared  with  the  annual  deficits  under  the 
Wilson-Gorman  tariff. 

Employment  and  Earnings.  —  Supply 
will  always  be  governed  by  demand,  and  demand 
will  depend  on  ability  to  buy,  so  that  purchasing 
power  is  the  basis  of  prosperity.  Our  spendable 
income  is  governed  by  the  amount  of  employ- 
ment and  earnings  of  all  classes,  and  in  this 
respect  we  are  breaking  records  year  after  year 
under  the  continued  successful  operation  of  the 
Dingley  tariff. 

Samuel  Gompers,  president  of  the  American 
Federation  of  Labor,  estimated  that  3,000,000 
men  were  out  of  employment  during  the  low- 
tariff  period  from  1893  to  1897.  Not  only  that, 
but  theyarages  of  those  employed  were  constantly 
forced  down,  many  working  only  part  time  at 
that.  Now,  Mr.  President,  what  does  it  mean 
to  have  3,000,000  men  idle?  At  $2  per  day  it 
means  a  loss  of  $1,800,000,000  a  year  in  wages, 
or  $9,000,000,000  in  five  years.  That  is  more 
than  all  the  gold  and  silver  in  the  world.  It 
means  a  loss  of  $3,000  each  to  ^3,000,000  fami- 
lies, and  $3,000  will  buy  a  large  quantity  of  food 
and  clothing  and  education  and  comfort  and 
happiness.  The  earnings  lost  during  the  low- 
tariff  period  can  not  be  calculated,  but  whatever 
they  were  we  have  a  different  story  to  tell  of  the 
past  five  years. 

Not  only  is  labor  all  over  the  country  fully 
employed,  but  wages  have  been  increased  again 
mi  again.   It  ii  tmposiible  to  give  exact  figures 


of  the  number  of  persons  employed  or  the  amoiat 

of  wages  paid,  and  yet  we  can  get  a  relative 
idea  from  the  labor  bulletins  of  the  different 
States.  Take  Massachusetts,  for  instance,  & 
typical  manufacturing  State.  The  Bureau  of 
Statistics  of  Labor  presents  from  time  to  time 
an  index  figure  indicating  the  level  of  employ- 
ment and  earnings.  In  the  May  number  c  f  the 
Labor  Bulletin  a  comparison  is  made  between 
April,  1902,  and  February,  1898.  Starting  with 
100  as  a  base,  the  following  result  is  shown,6 


Febru- 

April, 

ary,  1898. 

1902. 

100 

109.65 

100 

116.76 

100 

137.36 

That  Nis,  employment  has  increased  nearly 
twice  as  fast  as  population,  and  earnings  have 
increased  twice  as  rapidly  as  employment,  or 
four  times  as  much  as  population,  and  if  the 
comparison  were  made  with  1895  and  1896,  the 
contrast  would  be  much  greater.  What  is  true 
of  Massachusetts  is  no  doubt  true  of  New  York, 
New  Jersey,  Pennsylvania,  Illinois,  and  the  other 
industrial  States.  This  is  the  result  of  foingley- 
ism ;  this  is  the  foundation  of  our  splendid  home 
market ;  this  is  the  demand  that  keeps  our  mills 
running  night  and  day,  our  railroads  freighted 
to  their  utmost  capacity,  and  our  farmers  busy 
and  well  rewarded  with  sales  of  their  entire 
surplus  product  at  good  prices.  Not  only  is 
every  income-earner  employed  at  high  salaries 
and  ^wages,  but  the  hours  of  labor  have  been 
shortened,  with  its  consequent  hour  or  two  more 
of  domestic  and  social  intercourse  and  happiness. 

Agriculture.  —  I  wish  to  show  now,  Mr. 
President,  the  effect  of  these  immense  earnings 
upon  our  agriculture,  then  upon  our  manufac- 
tures.  First,  as  regards  agricultmre-   Said  th« 


Orange  Judd  Farmer,  in  its  issue  of  October  19, 
1901: 

The  most  prosperous  year  in  the  history  of  the 
American  farmer  is  drawing  to  a  close. 

And  yet  last  year  we  had  an  unusually  short 

corn  crop,  a  small  potato  and  apple  crop,  and, 

with  the  exception  of  wheat,  only  a  normal  crop 


in  all  staples.  I  now  want  to  compare  the  size 
and  value  of  our  farm  products  during  1896,  our 
last  low-tariff  year,  and  1901,  our  last  protec- 
tion year.  The  figures  are  as  follows  in  round 
millions,  as  estimated  by  the  Department  of 
Agriculture : 


Quantity. 

Value. 

1896. 

1901. 

1S96. 

1901. 

Crop. 

470,000,000 
2,270,000.000 

748,000,000 
1,522,000,000 

$341,000,000 
488,000,000 
134,000,000 
10,000,000 
23,000,000 
10,000,000 
6,500,000 
70,000,000 
290,000,000 
:  385,000,000 
69,000,000 

$467,000,000 
922,000,000 
294,000,000 
17,000,000 
48,000,000 
35,000,000 
8,500,000 
100,000,000 
368,000,000 
510,000,000 
63,000,000 

do 

Oats   

717,000,000 
24,000,000 
70,000,000 
17,000,000 
14,000,000 

245,000,000 
8,800,000 
59,000,000 
69,000,000 

736,000,000 
30,000,000 

109,000,000 
29,000,000 
15,000,000 

167,000,000 
10,500,000 
51,000,000 
25,000,000 

 do..  . . . 

 do  

Buckwheat 

 do  

Cotton   .  .  , 

Hay    .  ,  , 

Total    value  of 

above  crops  . , , 

1,825,500,000 

2,832,500,000 

Live  Stock. 

Milch  cows 

16,000,000 
32,000,000 
43,000,000 
38,000,000 
15,000,000 

20,000,000 
32,000,000 
50,000,000 
43,000,000 
15,000,000 

366,000,000 
509,000,000 
186,000,000 
65,000,000 
500,000,000 

644,000,000 
885,000,000 
298,000,000 
134,000,000 
>  720,000,000 

Cattle  . ,  , 

Total  value  live 

stock   

1,626,000,000 

2,681,000,000 

Aggregate  val- 

3,451,500,000 

5,513,500,000 

Increase  in  Value  of  oyer  1,000,- 
000,000.  — Here  is  an  increase  in  value  of  over 
$1,000,000,000  in  these  crops  and  an  increase  of 
over  $1,000,000,000  in  the  value  of  farm  ani- 
mals, and  it  must  be  remembered  that  1901  was 
a  poor  year  and  1896  a  good  year  in  farm  pro- 
duction. What  made  this  increase  of  over 
$2,000,000,000?  It  was  the  demand  of  fully 
employed,  well-paid  people,  due  to  a  tariff  that 
enables  us  to  do  our  own  work  instead  of  hiring 
the  cheap  labor  abroad  to  do  it  for  us. 

In  this  connection  I  want  to  quote  the  follow- 
ing from  the  Orange  Judd  Farmer  of  October  19, 
1901: 

Encouraging  as  is  the  agricultural  situation  for 


this  year,  it  is  still  more  interesting  when  we 
reflect  that  1901  is  the  fifth  year  of  the  suc- 
cessive upward  trend  to  agricultural  values.  Some 
conception  may  be  formed  of  the  tremendous  im- 
provement that  has  been  wrought  in  the  farmers' 
financial  condition  when  we  find  that  for  the  past' 
five  years  the  cereal  crops  made  a  value  of 
$6,245,000,000,  compared  to  $5,282,000,000  during 
the  five  years  of  agricultural  depression  ending 
with  1896.  The  annual  average  value  of  cows, 
cattle,  hogs,  and  sheep  for  the  past  half  decade 
has  been  $345,000,000  more  than  for  the  previous 
period,  but  the  total  value  of  horses  still  shows 
a  heavy  decline  from  the  boom  of  1892. 

All  history  affords  no  precedent  for  so  remark- 
able a  transformation.  It  is  shown  also  by  the 
degree  to  which  farm  mortgages  have  been  paid 
up,  and  by  the  substantial  improvements  that  have 
been  made  in  farm  buildings  and  equipment,  and 
by  the  strong  upward  tendency  to  the  value  of 
farm  lands,  especially  in  the  Central  and  West- 
ern States. 


6 


Even  billions  of  dollars  can  Inadequately  ex- 
press the  improvement  in  agricultural  values  and 
incomes  compared  to  the  depths  of  the  late  depres- 
sion. And  because  farmers  are  in  this  prosperous 
condition,  and  because  they  are  the  greatest  con- 
sumers of  manufactures,  the  industrial  outlook 
Is  generally  satisfactory  and  encouraging. 

Here  is  a  statement  of  fact  by  a  conservative 
farm  journal  without  the  reasons.  From  1893 
to  1897  we  had  practical  free  trade.  From 
1897  to  1901  we  had  protection.  No  one  claims, 
Mr.  President,  that  the  tariff  has  anything  to 
do  with  the  size  of  crops,  but  I  do  maintain  that 
it  has  much  to  do  with  values.  The  3,000,000 
idle  men  of  1896  could  not  buy  much  bread. 
They  could  not  eat  as  many  potatoes,  apples, 
and  other  products  of  the  farm,  and  as.  v?g  con- 
sume 90'  per  cent  of  our  farm  products  at  home, 
our  farmers  are  dependent  on  the  purchasing 
power  of  the  people  for  both  quantity  disposed 
of  and  price  received. 

A  protective  tariff  insures  the  farmer  against 
the  disaster  that  would  otherwise  attend  a  short 
crop  because  the  people  can  afford  to  pay  the 
enhanced  price.  That  is  why  the  farmer  got 
nearly  twice  as  much  for  his  short  corn  crop  of 
last  year  as  he  did  for  his  good  crop  of  1896. 
I  showed  in  this  Chamber  two  years  ago  that  the 
farmers  of  the  country  lost  $10,000,000,000 
because  of  low -tariff  agitation  and  operation. 
Since  the  Dingley  law  went  into  effect  they 
have  gained  in  increased  prices  and  enhanced 
values  much  more  than  this  amount.  They  have 
paid  off  mortgages  to  the  amount  of  many  mil- 
lions ;  they  have  bought  millions  of  dollars' 
worth  of  new  machinery  and  implements;  they 
have  improved  their  property,  and  many  farm 
values  are  to-day  double  what  they  were  in  1895 
and  1896. 

During  the  fiscal  year  1901  we  exported 
nearly  a  billion  of  dollars*  worth  of  agricultural 


products  against  a  little  more  than  half  a  billion 

dollars'  worth  in  each  of  the  .fiscal  years  1895 
and  1896.  The  average  agricultural  exports 
during  the  years  1898,  1899,  1900,  and  1901 
exceeded  $850,000,000  in  value  against  $550,- 
000,000  in  1895  and  1896,  a  gain  of  $200,000,- 
000  a  year,  and  yet  the  crops  of  1895  and  1896 
were_  abnormally  large. 

I  want  to  emphasize  this  fact,  Mr.  President, 
that  it  is  not  the  size  of  the  farmer's  crop,  but 
the  value  of  the  crop  which  rewards  his  indus- 
try; and  the  value  must  and  does  depend  on 
the  tariff,  which  gives  good  wages  the  year 
round  to  all  consumers.  And  the  very  prosperity 
which  comes  to  the  farmer  goes  back  to  the 
manufacturer  and  merchant  and  railroads  and 
labor  of  all  kinds  in  the  increased  consumption 
of  implements,  clothing,  building  material,  and 
necessaries  and  luxuries  of  a  thousand  and  one 
kinds.  So  we  all  become  interdependent,  and 
protection  scatters  its  benefits  and  blessings  far 
and  wide. 

Sheep  and  Wool.— Free  wool  was  one  of 
the  features  of  the  Wilson-Gorman  tariff.  The . 
Dingley  law  reimposed  the  adequate  protection 
given  by  the  McKinley  law.  Let  me  give  a  few 
figures  showing  the  result,  first,  as  regards 
domestic  production  and  imports  of  wool : 


Year. 

Production. 

Imports. 

Pounds. 

Pounds. 

1893  "."  .7. . 

303.000,000 

172.435.S38 

1894  

298,000,000 

55,152,558 

1895  

310,000,000 

206,033,906 

273,000,000 

230,911,473 

1897   

259,153,251 

350,852.026 

1898  

266,720,684 

I32,795,30li 

1899  

272,191,330 

76,739,219 

1900  

288,630.621 

155,918,455 

1901  

302,502,328 

103,583,505 

Nearly  800,000,000  pounds  of  wool  were  im- 
ported during  the  three  years  1895,  1896,  and 


1897,  and,  Mr.  President,  I  am  informed  that  we 
have  not  used  it  up  yet.  Now,  let  me  give  a  list 
of  prices  of  Ohio  fleece  wool  on  the  1st  of  Oc- 
tober last,  as  furnished  by  Mauger  &  Avery,  of 
Boston: 


Year. 

Fine. 

Me- 
dium. 

Coarse. 

Cents. 

Cents. 

Cents. 

23 

24 

21 

19 

21 

19 

18 

21 

19 

1896   

18 

19 

18 

1897  

27 

29 

25 

28^ 

30 

24  y2 

1899  

31 

33  y2 

29 

1900.  

28  y2 

26  y2 

1901  

25 

2&y2 

23 

And  it  must  be  understood  that  these  prices 
under  the  Dingley  law  have  been  maintained  in 
spite  of  the  lowest  figures  abroad  ever  known. 
Our  woolgrowers  have  reaped  a  profit  of  a  few 
cents  on  every  pound  of  wool  produced,  while 
the  London  market  has  shown  the  greatest 
slump  in  its  history.  So  much  for  wool.  Now 
a  glance  at  sheep  and  their  value  % 


Year. 

Number. 

Value. 

1893  

47,272,553 

$125,909,264 

1894  

45,048,017 

89,186,110 

1895  

42,294,064 

66,685,767 

1S96  

38,298,783 

65,167,735 

36,818,643 

67,020,942 

1S98  

37,656,690 

92,721,133 

39,114,453 

107,697,530 

41,883,065 

122,665,913 

43,000,000 

134,000,000 

These  are  the  very  conservative  figures  of  the 
Department  of  Agriculture.  These  figures  of 
sheep  and  wool  show  just  what  free  wool  and 
protected  wool  do  for  the  farmer.  But  what  of 
our  woolen  industry?  Closed  mills  and  mills 
working  part  time  in  1896.  Busy  mills  in  1902. 
The  woolen  industry  has  been  greatly  depressed 
throughout  the  world  because  of  overproduction. 
Qur  woolen  manufacturers  fom&  suffered  too,, 


but  not  to  the  extent  of  those  abroad,  and  the 
outlook  is  far  from  gloomy.  Full  recovery  may 
come  at  any  time,  but  it  is  different  with  the 
sheep  industry.  In  this  connection  I  want  to 
quote  a  pat  paragraph  from  a  speech. delivered 
by  my  friend  the  senior  Senator  from  Wyoming 
before  the  Wool  Manufacturers  Association  at 
the  Hotel  Savoy,  New  York,  January  9, 1901. 
Senator  Warren  said : 

Gentlemen,  woolen  mills  may  be  shut  down  at 
dark  and  reopened  at  daylight;  shut  down  a 
month,  or  even  a  year,  and  still  be  there  on  the 
ground  when  needed  for  business ;  but  sheep  can 
not  be  so  shut  down  and  reopened.  It  takes 
years  to  recover  from  losses  suffered,  while  it 
only  takes  months  to  effect  them. 

Our  Tobacco  Industry.  —  No  one  will 

dispute  that  tobacco  and  cigars  are  a  luxury, 
and  that  their  increased  consumption  must  in- 
dicate increased  prosperity.  It  will  be  interest- 
ing, then,  to  note  the  conditions  of  the  industry 
now,  as  compared  with  low-tariff  times  of  five 
years  ago.  The  following  table  shows  the  com- 
parison : 


PRODUCTION  AND  CONSUMPTION  OP  TOBACCO  IN 
THE  UNITED  STATES. 


Fiscal 
Year. 

Produc- 
tion of  cigar 
leaf. 

Used  in 
cigars  and 
cigarettes. 

Cigar  output. 

Pounds. 

Potinds. 

1894  

88,650,000 

87,336,348 

4,066,917,433 

1895 ..... 

66,500,000. 

89,680,605 

4,163,972,440 

1896 

77,000,000 

93,764,920 

4,237,755,943 

1897  

110,662,750 

90,950,987 

4,063,169,097 

1898. .'.  . . 

105,702,450 

104,116,393 

4,910,937,397 

1899  

147,106,050 

104,589,331 

5,077,287,824 

1900  

142,686,250 

120,350,271 

5,963,170,381 

1901  

131,444,050 

128,448,475 

6,475,438,411 

It  will  be  seen  that  our  tobacco  production  is 
double  what  it  was  in  1895  or  1896,  and  that 
we  are  consuming  about  the  entire  output.  The 
increase  in  cigar  manufacture  has  been  more 
than  50  per  cent.  The  tobacco  used  in  the  cigar 
and  cigarette  output  for  the  year  ending  June 
30,  1901,  was  approximately  128,448,475  pounds. 
To  this  add  20,000,000  pounds  used  in  smoking 
tobacco  and  24,865,170  pounds  imported,  and  a 
total  of  173,313,645  pounds  was  apparently 
consumed.  But  on  June  30,  1901,  there  were 
17,896,518  pounds  in  hand,  which  would  leave 
155,417,127  as  being  used.  Deducting  5,417,127 
pounds  exported,  and  a  total  of  about  150,- 
000,000  pounds  would  be  required.  This  was 
practically  the  size  of  the  domestic  crop  for 
1899  and  1900,  which  brought  the  best  price  for 
years. 

Manufactures.— While  the  census  report 
on  manufactures  for  1900  is  most  satisfactory, 
it  by  no  means  shows  the  full  result  of  the 
operation  of  the  Dingley  law.  The  total  value 
of  products  for  1900  is  given  at  $13,040,013,638, 
as  against  $9,372,437,283  in  1890.  We  have 
progressed  wonderfully  in  the  last  two  or  three 
years,  and  it  is  likely  that  the  output  for  1902 
will  exceed  $15,000,000,000,  which  is  double  the 
output  of  1895  or  1896.  In  spite  of  consolida- 
tions and  combinations,  the  number  of  manu- 
facturing establishments  increased  over  44  per 
-cent  in  the  last  decade. 

The  following  table,  which  I  have  compiled 
from  the  census  report  on  manufactures,  will 
show  the  great  gain  we  made  in  our  large  indu- 
stries during  the  last  decade  in  spite  of  the 
adverse  conditions  of  four  years,  affected  by  a 
low-tariff  law : 


Manufacturing  output  in  certain  industries, 
1890  and  1900. 


Articles. 

1890.      |  1900. 

Agricultural  implements. 

$81,271,651 

$101,207,428 

Boots  and  shoes,  factory 

220,649,358 

261,028,580 

Carriages  and  wagons.  . 

114,551,907 

121,537,276 

129,461,698 

218,238,277 

174,699,079 

202,582,396 

Cotton  manufactures.... 

267,981,724 

339,198,619 

Flouring  and  grist  mill 

513,971,474 

560,719,063 

478,687,519 

835,759,034 

171,063,337 

204,038,127 

2S9,775,639 

340,615,466 

Lumber     and  timber 

437,957,382 

566,832,984 

78,937,184 

127,286,162 

Printing  and  publishing. 

179,859,750 

222,983,569 

Shipbuilding   

38,065,410 

74,578,158 

Silk  and  silk  goods  

87,298,454 

107,256,258 

561,611,668 

786,603,670 

Wool  manu f actures  

345,655,524 

400,093,833 

These  are  but  a  few  of  our  principal  industries 
in  which  I  wish  I  could  make  the  comparison 
between  1902  and  1896.  To  some  extent  this 
can  be  done  in  our  iron  and  steel  manufactures. 

While  we  have  made  wonderful  progress  in 
all  lines  of  manufacturing  since  the  enactment 
of  the  Dingley  law,  it  is  in  iron  and  steel  prod- 
ucts that  we  have  made  the  largest  gains.  This 
can  be  shown  in  no  better  way  than  by  a  com- 
parison of  pig-iron  production  for  the  past  few 
years.    It  has  been  as  follows : 

Tons  of  2,240  pounds. 


1894    6,657,388 

1895    9,446,308 

1896   8,623,121 

1897    9,652,680 

1898    11,773,934 

1899    13,620,703 

1900   13,789,242 

1901   15,878,354 


This  year  the  amount  will  exceed  17,000,000 
tons,  or  nearly  three  times  the  production  of 
1894. 

Iron  and  Steel  Production.— The  total 
production  of  all  kinds  of  iron  and  steel  rolled 
into  finished  forms  in  the  United  States  since 
1892  can  be  seen  from  the  following  table,  taken 
from  the  Annual  Report  of  the  Iron  and  Steel 
Association ; 


9 


Production  of  rolled  iron  and  steel,  gross  tons,  1892-1901, 


Year. 

Iron  and 
steel  rails. 

hoops, 
skelp,  and 
shapes. 

at  Ml 

rods. 

StlGGtS,  GX* 

GGpt  nail 

Cut 
nails, 
• 

Total. 

1,551,844 

3,033,439 

627,829 

751,460 

201,242 

6,165,814 

1,136,458 

2,491.497 

537,272 

674,345 

136,113 

4,975,685 

1,021,772 

2,155,875 

673,402 

682,900 

108,262 

4,642,211 

1,306.135 

3,005,765 

791,130 

991,459 

95,085 

6,189,574 

1896  

1,122,010 

2,731,932 

623,986 

965,776 

72,137 

5,515,841 

1897  

1,647,892 

3,081,760 

970,736 

1,207,286 

94,054 

7,001,728 

1898  

1,981,241 

3,941,957 

1,071,683 

1,448,301 

70,188 

8,513,370 

1899  

2,272,700 

4,996,801 

1,036,398 

1,903,505 

85,015 

10,294,419 

1900  

2,385,682' 

4,390,697 

846,291 

1,794,528 

70,245 

9,487,443 

1901  

2,874,639 

5,785,479 

1,365,934 

2,254,425 

68,850 

12,349,327 

This  shows  an  increase  of  over  100  per  cent1 
since  1895-96.  Cut  nails  have  given  way  to 
wire  nails,  the  production  of  which  has  grown 
enormously  since  adequate  protection  was  given 
to  the  industry  in  1883.  „  The  following  table 
shows  the  result : 

Production  of  wire  nails  in  kegs  of  100  pounds 


1882  ,   50,000 

1883  .'   80,000 

1884   120,000 

1885   200,000 

1886   300,000 

1887   500,000 

1888   1,000,000 

1889  ..   2,200,000 

1890   3,500,000 

1891   4,114,385 

1892    4,719,524 

1893   5,095,985 

1894   5,681,801 

1895..".   5,581,403 

1896   4,719,860 

1897   8,997,245 

1898   7,418,475' 

1899   7,618,130 

1900   7,23-3,979 

1901   9,803,822 


The  price  in  1883  was  8.35  cents  per  pound, 
and  in  1902,  2.45  cents  per  pound. 

Tin  Plate. — Another  more  recent  but  none 
the  less  remarkable  instance  of  an  industry 
made  possible  by  protection  is  our  tin-plate 
industry,  due  to  the  McKinley  law.   The  fol- 


lowing table  shows  the  change  in  our  production 
and  importations : 


Production  and  importation  of  tin  plate. 


Year. 

Imports. 

Produc- 

tion. 

Gross 

Gross 

tons. 

tons. 

329,435 

None. 

1891  

327,882 

999 

1892  

268,472 

18,803 

1893  

253,155 

55,182 

1894  

215,068 

74,260 

1895  

219,545 

113,666 

1896  

119,171 

160,362 

1897  

83,851 

256,598 

1898  

66,775 

326,915 

1899  

58,915 

360,875 

1900  

66,055 

302,665 

1901  

52,625 

399,291 

So  great  is  our  consumption  of  iron  and  steel 
that  we  cannot  supply  the  demand  at  any  price, 
and  we  are  forced  to  importations. 

Our  exports  of  manufactures,  although  but  a 
small  per  cent  of  our  production,  show  a  re- 
markable advance  under  the  Dingley  tariff,  as 
will  be  seen  from  the  following  table : 


Value. 

1893   $158,023,118 

1894   183,728,808 

1895   183,595,743 

1896   228,571,178 

1897   277,285,391 

1898   290,697,354 

1899   339,592,146 

1900   433,851,756 

1901   412,155,066 


For  the  present  year  the  value  will  be  about 


10 


the  same  as  last  year  in  spite  of  a  decrease  in 
price  in  many  commodities  and  the  falling  off  in 
iron  and  steel  exports,  due  to  home  consumption. 
The  manufacturing  situation  to-day  in  the  United 
States  can  be  summed  up  in  the  statement  that 
practically  every  mill  and  factory  and  shop  is 
working  to  full  capacity,  with  orders  far  ahead: 
and  prices  most  satisfactory. 

In  the  Territories.  — In  connection  with 
this  subject  of  our  manufactures  I  want  to  call' 
attention  to  the  fact  that  the  large  increase  is 
not  confined  to  the  great  manufacturing  States, 
of  the  East.  Let  me  show  what  our  Territories 
are  doing.  Here  are  the  figures  from  the 
Census  Bureau : 


Territory. 

Value  of 

product. 

Increase, 

1900. 

1890. 

per  cent. 

1 

Arizona   |  $21,315,189 

New  Mexico   ..  j  5,605,795 
Indian  Territory  j  3,892,181 
Oklahoma   j  7,0S3,93S 

$947,547 
1,516,195 
248,932 
180,445 

2,ir»o 

270 
1,464 
3,826 

Total  

37,897,103 

2,893,119 

1,210 

Here  also  are  the  figures  from  three  States 
that  confirm  my  contention  that  protection  is 
spreading  its  benefits  in  every  part  of  the  land : 


State. 

Value  o?  product. 
1900.      |  1890. 

Increase, 
per  cent. 

$4,020,^32 

$1,396,096 

188 

1,643.673 

1,105,063 

49 

4,301,240 

2,367,601 

82 

As  showing  how  wages  in  manufacturing  af- 
fect value  of  farm  'products,  I  want  to  present 
the  following  figures  from  the  census  report  of 
Arizona : 


1900. 

1890. 

Increase, 
per  cent. 

$2,369,065 

$302,146 

684 

Farm  products : 

6,179,397 

1,045,970 

480 

The  argument  holds  rgood  in  Arizona  as  well 
as  Massachusetts  and  every  other  section  of  the 
country. 

Beet  Sugar.  — An  industry  made  possible' 
by  the  Dingley  law  was  the  manufacture  of  sugar 
from  beets.    The  progress  made  is  seen  in  the 


1896-97. 

1901-2. 

Number  of  factories  

7 

40,000 

42 

185,000 

The  new  plants  projected  for  1902  number  83, 
with  a  capital  of  $50,000,000,  capable  of  a  total 
output  of  550,000  tons  annually  and  a  purchas- 
ing capacity  of  $20,000,000  worth  of  sugar 

beets. 

Mineral  Products.— Our  mining  statistics 
show  the  same  substantial  increase  as  our  agri- 
culture and  manufacturing.  I  give  simply  a 
comparison  between  1896  and  1901  in  a  few 
products  and  the  total  value ' 


1896. 

1901. 

Gold  

$53,000,000 

$83,000,000 
75,000,000 

325,000,000 
55,000,000 

Coal   

23,000,000 
196,000,000 
30,000,000 

Total  mineral  products 

622,000,000 

1,200,000,000 

The  iron  ore,  coal,  and  stone  [are  put  into  use 
as  fast  as  mined,  and  add  most  materially  to  our 
manufacturing  and  building  output.  We  have 
almost  doubled  the  value  of  our  mineral  products 
under  the  demands  of  industry  made  possible  by 
a  return  to  protection,  and  the  mining,  transpor- 
tation, and  conversion  into  a  usable  commodity, 
consisting,  as  it  does,  of  so  much  increased  labor, 
is  but  another  testimony  to  the  benefits  of  the 
Dingley  law* 


Railroad  Business.  — The  effect  of  the 
great  consumption  of  farm  products  and  man- 
ufactures is  nowhere  more  apparent  than  in  the 
enormous  railroad  business  of  the  country.  We 
have  now  passed  the  200,000  mark  in  system 
mileage  and  are  approaching  300,000  in  total 
miles  of  track.  Over  1,000,000  men  are  em- 
ployed with  annual  wages  exceeding  $600,000,000. 
The  railroad  systems  of  the  country  represent 


a  capital  of  $12,000,000,000,  with  annual  earn- 
ings exceeding  $1,500,000,000.  Six  hundred 
million  passengers  are  carried  annually  and  over 
1,100,000,000  tons  of  freight.  I  want  now, 
Mr.  President,  to  show  the  difference  between 
railroad  business  in  this  country  during  low- 
tariff  times  and  protection  times.  The  following 
table  will  show  statistics  of  the  Interstate  Com- 
merce Commission  anc|  Poor's  Manual  ; 


LOW-TARIFF  PERIOD. 


Years. 

Freight  car- 
ried, tons. 

Miles 
built. 

Dividends 
paid. 

Gross  receipts. 

1895  

696,761,171 

1,650 

$81,685,774 

$1,092,395,437 

1896  :  

765,891,385 

1,704 

81,528,154 

1,125,632,025 

1897  ,-v,  

741,705,946 

1,818 

83,680,040 

1,132,866,626 

734,786,164 

1,724 

82,297,989 

1,116,964,696 

PROTECTIVE-TARIFF  PERIOD. 


1898.  

879,006,307 
959,763,583 
1,101,680,238 
♦1,350,000,000 

2,215 
3,966 
3,503 
5,057 

$94,937,526 
109,032,252 
140,343,653 

$1,249,358,724 
1,336,096,379 
1,501,695,378 

1899  

1 900  

1901  





1,072,612,542 

3,685 

114,771,144 

1,362,450,227 

XjO^-tfABIFy  PERIOD, 


Yea?. 

Wages  paid. 

Number 
of  em- 
ployees. 

Freight 
rate  per 
ton-mile. 

1895  

$445,508,261 

468,824,531 
465,601,581 

- 

785,034 
826,620 
823,476 

Cents. 
0.839 
.806 
.798 

1896  

1897  

Average. . 

469,978,  IS! 

811,710 

.814 

PROTECTIVE-TARIFF  PERIOD. 


Number 

Freight 

Year. 

Wages  paid. 

of  em- 

rate per 

ployees. 

ton-mile. 

1898  | 

$495,055,618 

874.558 

0.753 

1899  | 

522,967,896 

928,924 

.724 

1900  | 

577,264,841 

1,017,653 

.729 

1901  | 

♦634,000,000 

Average. .  | 

557,072,091 

940,378 

.735 

*  Estimated,,. 


12 


A  50  Per  Cent  Increase.— 1  regret  ex- 
ceedingly that  I  cannot  get  the  exact  figures 
for  1901  and  an  estimate  for  the  present  year, 
for  they  would  show  a  most  substantial  increase 
over  1900.  Enough  is  known,  however,  to  war- 
rant the  statement  that  our  railroad  business  is 
now  more  than  50  .per  cent  better  in  every  way 
than  during  the  low-tariff  period. 

The  railroad  business  is  the  index  of  the 
country's  progress  and  prosperity.  It  is  depend- 
ent upon  the  demand  made  by  consumers  and  the 
supply  of  producers.  It  is  a  fact  that  for  three 
years  our  railroads  have  been  pushed  to  their 
very  utmost  facilities  of  rolling  stock.  A  car 
famine  is  the  only  famine  we  have  known  under 
the  Dingley  law.  Locomotives  and  freight 
cars  cannot  be  made  fast  enough  with  all 
the  facilities  of  our  great  locomotive  and  car 
works. 

Our  free  traders  delight  in  calling  our  rail- 
roads a  "non-protected"  industry,  and  yet  there 
is  no  business  in  the  country  that  shows  so 
quickly  and  so  substantially  the  effect  of  the 
tariff  as  the  railroads.  Why  did  the  freight 
business  practically  stand  still  during  the  opera- 
tion of  the  Wilson-Gorman  law?  Why  has  it 
increased  at  the  rate  of  15  to  20  per  cent  yearly 
under  the  Dingley  law  and  would  increase  even 
more  rapidly  if  cars,  and  locomotives  could  be 
had  ?  Why  were  so  many  railroads  in  the  hands 
of  receivers  in  1896  and  so  few  in  receivers' 
hands  in  1902J  Why  have  the  value  of  railroad 
stocks  increased  so  enormously  in  the  past  five 
years?  Do  not  tell  me  these  are  fictitious 
values  or  I  shall  point  to  the  dividends  now  paid 
as  compared  with  1896  —  fully  100  per  cent 
more.  And  to  whom  are  these  dividends  paid? 
From  the  ^report  of  the  Interstate  Commerce 
Commission  I  take  these  figures  for  1900 ; 


Stocks    outstanding  $5,845,579,593 


Owned  by  railway  corporations   1,470,218,972 

Not  owned  by  railway  corporations.  4,375,360,621 


Bonds     4,900,626,823 


Owned  by  railway  corporations   472,831,377 

Not  owned  by  railway  corporations..  427,795,446 


Total  stocks  and  bonds  10,746,206,416 


Owned  by  railway  corporations. .. .  1,943,050,349 
Not-owned  by  railway  corporations.  8,803,156,067 


Who  owns  the  railroads  then?   Let  me  give  a 

few  figures : 

Stockholders. 

New  York  Central   15,000 

Pennsylvania    28,000 

New  York,  New  Haven  and  Hartford   10,000 

Union  Pacific   '   14,000 

Chicago,  Burlington  and  Quincy    13,000 

Northern  Pacific   10,000 

Atchison,  Topeka  and  Santa  Fe    13,000 

Illinois  Central    5,000 

Southern  Railway   4,700 

Erie   3,450 

And  so  on,  and  the  dividends  are  scattered 
through  thousands, of  different  channels,  carry- 
ing income  and  support  to  a  quarter  million  of 
people,  besides  the  millions  concerned  in  the 
earnings  of  over  a  million  employees. 


Shippings — I  have  shown  'the  wonderful 
progress  made  in  railroading  during  the  past 
few  years.  I  now  ,wish  to  present  some  figures 
showing  the  remarkable  increase  in  tonnage  of 
our  merchant  marine. .  The  figures  are  from  the 
report  of  the  Bureau  of  Navigation : 


IS 


Year  ending 
June  30 — 


1890 
1891 
1892 
1893 
1894 
1895 
1896 
1897 
1898 
1899 
1900 
1901 


Vessels  built  and  total  tonnage. 


Canal 

Sailing. 

- 

boats 
and 

barges. 

Gross 

Gross 

tons. 

tons. 

102,873 

32,204 

144,290 

39,975 

83,217 

23,885 

49,348 

27,923 

37,827 

9,648 

34,900 

6,949 

65,237 

23,832 

64,309 

61,770 

34,416 

40,204 

98,073 
116,460 

50,907 

44,802 

126,165 

83,733 

Steam. 


Gross 
tons* 

159,046 
185,037 
92,531 
134,368 
83,720 
69,753 
138,028 
106,153 
105,838 
151,058 
202,528 
273,591 


Total. 


Tonnage 
of  mer- 
chant ma- 
rine of  the 
United 
States. 


Per  cent 
of  foreign 

trade  car- 
ried in 

American 
vessels. 


Gross 

tons. 

294,123  _ 

4,424,497 

123 

369,302 

4,684,759 

12.5 

199,633 

4,764,921 

12.3 

211,639 

4,825,071 

12.2 

131,195 

4,684,029 

13.3 

111,602 

4,635,960 

11.7 

227,097 

4,703,880 

12 

232,232 

4,769,020 

11 

180,458 

4,749,738 

9.3 

300,038 

4,864,238 

8.9 

393,790 

5,164,839 

9.3 

483,489 

5,524,218 

8.2 

It  will  be  seen  that  we  were  doing  very  well 
duriDg  the  operation  of  the  McKinley  law,  but 
what  a  collapse  under  the  Wilson-Gorman  law ! 
Now  note  the  advance  under  the  Dingley  tariff. 
Our  tonnage  built  last  year  was  "four  times  that 
built  in  1895.  It  will  be  seen  that  over  90  per 
cent  of  our  foreign  trade  is  carried  in  foreign 
bottoms,  so  that  our  tonnage  of  merchant  marine 
is  used  almost  wholly  in  coast  and  lake  commerce. 
The  enormous  increase  in  tonnage,  then,  gives  a 
pretty  accurate  idea  of  the  increase  in  our  coast 
and  lake  traffic 

Bank  Clearances.— Our  bank  clearings 
represent  the  volume  of  business  transacted,  as 
about  98  per  cent  of  "settlements  are  made  by 
bank  checks  and  credits  which  are  recorded  in 
the  clearing  houses  of  the  "country.  Here,  then, 
we  get  a  basis  of  relative  ^business  done ;  and  to 
show  the  comparison  I  present  the  total  bank 
clearings  since  1892,  taken  from  the  figures  of 
the  Bureau  of  Statistics  of  the  Treasury  Depart- 
ment: 

Bank  clearances. 

1892  „  . . ..    $60,833,572,438 

1893  ........   58,880,682,455 

1894   45,028,496,746 

1895   50,975,155,046 

18M.  ..;  81,930,651,733 


1897   54,179,545,030 

1898   65,924,820,769 

1899   88,909,661,776 

1900   84,582,450,081 

1901   114,190,226,021 

It  will  be  seen  how  business  fell  off  in  1893 
and  1894  when  we  were  threatened  with  free 
trade  and  began  to  live  under  the  operation  of 
the  Wilson-Gorman  law.  We  recovered  but  little 
in  the  next  two  years,  and  1897  found  us  doing 
less  business  than  in  1892.  But  note  ^the  result 
since,  under  the  workings  of  the  Dingley  tariff. 
Observe  the  great  increases  each  year,  till  in 
1901  we  find  the  clearings  more  than  double 
what  they  were  in  1895,  or  1896.  These  are  the 
records  of  actual  business  transactions,  for  bank 
balances  are  computed  to  a  cent.  The  clearings 
for  the  first  four  months  of  1902  were  $39,000,- 
000,000,  showing  that  we  are  about  equaling 
the  record-breaking  figures  of  last  year.  We 
are  almost  doubling  the  figures  of  1892,  a  most 
astonishing  result.  In  this  connection,  I  may 
say  that  the  clearings  of  New  York  City  in  1902 
are  60  per  cent  larger  than  the  clearings  of 
London,  though  the  latter  city  has  a  million  more 
population  and  does  most  of  the  business  of 


14 


Post-Office  Business.— From  bank  clear- 
ings to  postage  stamps  is  a  wide  step,  but  I 
want  to  emphasize  the  value  of  a  protective 
tariff  in  small  transactions  as  well  as  great.  It 
would  seem  as  if  one  need  never  to  retrench  in 
the  matter  of  .postage,  no  matter  how  poor  the 
times  may  be.  The  constant  increase  in  popula- 
tion makes  an  increase  in  postal  revenues  almost 
imperative,  and  yet  the  little  1  and  2  cent 
stamps,  like  everything  else,  show  the  difference 
between  adversity  and  prosperity.  I  present 
herewith  a  table  showing  our  postal  receipts  for 
a  period  of  years  from  1889  to  1902 : 

18S9   $56,175,611 

1890   60,882,097 

1S91   65,931, 7S6 

1S92   70,930,476 

1893   75,896,933 

1894   75,080,479 

1S95   76,983,128 

189G   82,499,208 

1897   82,665,463 

1898   89,012,619 

1899.   95,021,384 

1900.   102,354,579 

1901  .,  111,631,193 

1902   *122,680,000 

*  Estimated  from  ten  months. 

Here  (from  1889  to  1893)  is  the  constant  in- 
crease we  should  look  for.  In  1894  there  is  an 
actual  decrease  and  no  material  increase  the 
year  following.  In  short,  the  average  annual 
increase  from  1893  to  1897  is  only  $1,689,633, 
really  a  falling  off  considering  the  increase  in 
population.  But  look  at  the  result  since  the 
Dingley  law  went  into  effect.  An  increase  of 
over  $40,000,000,  or  an  average  of  $8,000,000 
a  year."  Wo  are  increasing  our  expenditures 
largely  every  year,  and  yet  our  revenues  are  in- 
creasing still  more  rapidly  til!  soon  we  will  have 
a  self-supporting  department  and  ultimately  1 
cent  postage. 


Our  rural  free  delivery  is  being  rapidly  ex* 
tended  till  soon  every  farmer  in  the  land  will 
have  his  daily  mail  delivered  at  his  door,  giving 
him  his  daily  paper,  daily  weather  and  crop 
reports,  and  making  him  more  expert  in  his 
labor,  more  intelligent,  and  more  prosperous  and 
happy.  TJms  protection  scatters  its  blessings 
with  the  increased  sales  of  the  postage  stamps 
as  it  does  with  the  ton  of  rails  or  the  huge  loco- 
motive. 

Telegraph  and  Telephone.  —  Somewhat 
akin  to  postal  business  is  that  of  our  telegraph 
and  telephone  companies.  To  many  the  tele- 
graph and  telephone  message  is  a  necessity ;  to 
others  it  is  a  convenience;  to  others  a  luxury. 
In  a  most  peculiar  and  significant  way,  then,  the 
statistics  tell  the  story  of  prosperity.  The  fol- 
lowing table  shows  the  receipts  of  the  Western 
Union  Telegraph  Company  since  1889 : 

1889  ■   $20,783,194 

1890   22,387,029 

1S91   23,034,327 

1892    23,706,405 

1S93   24,978,443 

1894   21,852,655 

1895  :   22,218,019 

1896   22,612,736 

1897.  ..  :   22,63S,859 

1898   23,915,733 

1899  1   23,954,312 

1900   24,758,570 

1901   26,354,151 

1902   *27,850,O00 

♦Estimated. 

As  in  everything  else,  we  see  an  increase  up 
to  1893,  then  a  decrease  till  1897,  then  a  most 
substantial  increase  since.  This  increase  during 
the  operation  of  the  Dingley  law  has  been  in 
spite  of  a  most  phenomenal  increase  in  telephone 
business,  an  increase  in  the  Postal  Telegraph 
Company's  business,  and  private-wire  business. 
This  increase  in  telephone  business  can  be  seen 
from  the  following  table,  showing  subscribers 
and  employees  since  1894 1 


15 


Calendar  year. 

Sub- 
scribers. 

Em- 
ployees. 

237,186 
243,432 
281,695 
325,244 

29,353 

10,421 
11,094 
11,930 
14  425 

1896  

1S97     . . .  

Average  annual  increase . . 
1898   f.  

1,335 

384,230 
465,180 
632.946 
800,880 
138,883 

16,682 
19,668 
25,741 
32,837 
5,385 

1899   

1900   

1901   

Average  annual  increase.. 

Year. 


1893 
1894 
1895 
1896 
1897 
1S98 
1899 
1900 
1901 
1902 


Number  of 
depositors. 


Deposits. 


4,830,599 
4,777,687 
4,875,519 
5,065,494 
5,201,132 
5,385,746 
5,687,818 
6,107,083 
6,373,098 
6,7S4,392 


$1,785,150,957 
1,747,961,280 
1,810,597,023 
1,907,156,277 
1.939,376,035 
2,065,631,298 
2,230,366,954 
2,449,547,885 
2,601,189,291 
2,845,691,300 


These  figures  show  nearly  five  times  the  an- 
nual increase  under  the  Dingley  law  as  compared 
with  the  years  under  the  Wilson-Gorman  tariff. 
And  right  here  I  want  to  show  a  comparison  of 
the  annual  number  of  telephone  messages  in  dif- 
ferent countries  according  to  the  latest  avail- 
able statistics : 

Austria-Hungary,  1899   116,724,879 

Russia,    1898    103,'426!o88 

Germany,   1899    540,324,386 

France,   1898    141,226,883 

Great  Britain,  1900   ,   639,476,4^8 

United  States,  1901    2,30o]ooo!oOO 

We  do  more  telephoning  than  all  the  rest  of 
the  world  put  together  at  from  5  to  10  cents  a 
message.  All  this  has  been  made  possible  by 
the  great  prosperity  brought  to  us  by  the  Dingley 
tariff  law. 

Savings  and  Surplus.  —  Our  savings- 
banks  deposits  represent  a  portion  of  the  surplus 
earnings  cf  the  masses.  The  capitalist,  the 
manufacturer,  and  the  merchant  do  not  use  the 
savings  banks.  It  is  the  wage-earner  who  uses 
that  depository  for  a  part  of  his  surplus  funds, 
and  now,  Mr.  President,  I  want  to  show  just 
what  the  amount  of  these  savings  have  been 
during  the  past  ten  years  i 


Including  the  savings  in  State  banks,  there 
are  now  over  $3,000,000,000  of  savings  in  the 
banks  of  the  country  against  but  little  more 
than  half  that  sum  in  1S94.  It  will  be  seen  that 
in  1894  millions  were  withdrawn  from  the 
savings  banks  and  from  1893  to  1897  the  in- 
crease was  only  $154,225,07.8,  or  an  average  in- 
crease of  $38,556,245  a  year,  while  from  1897 
to  the  present  ti  me  the  increase  has  been  $906  - 
315,265,  or  an  average  of  $181,263,053  a  year. 
This  is  a  small  part  of  what  protection  is  doing 
for  the  people.  And  this  is  by  no  means  idle  ■ 
money.  Every  dollar  of  it  is  at  once  put  into 
use.  It  is  loaned  on  bond  and  mortgage  and  is 
employed  in  buying  construction  and  building 
material,  and  in  State,  and  county,  and  municipal 
improvements— in  the  employment  of  labor  at 
every  turn. 

My  own  State,  New  Hampshire,  has  had  an 
interesting  experience  in  the  matter  of  savings- 
banks  deposits.  For  the  years  1894,  1895,  1896, 
and  1897  there  was  an  aggregate  decrease  of 
deposits  to  the  enormous  amount  of  $13,222,416, 
while  for  the  years  1900  and  1901  there  has 
been  an  increase  of  $1,988,829. 

But  these  savings-banks  deposits  by  no  means 
measure  the  surplus  of  the  people's  earnings. 
There  are  the  building  and  loan  associations,  the 
insurance  premium,  the  installments  paid  on  the 
(little  home  and  on  the  furniture,  the  money 


spent  for  educating  the  children,  and  for  the 
luxuries  and  ornaments  of  the  body  and  home. 
Three  billion  dollars  of  savings  put  away  for  a 
rainy  day  and  increasing  at  the  rate  of  $200,- 
000,000  a  year,  and  we  are  by  no  means  a  provi- 
dent people.  We  are  the  most  extravagant 
people  on  earth,  and  we  can  afford  to  be  under 
a  protective  tariff.  It  may  be  said  that  our 
deposits  are  larger  than  those  of  any  other 
country  because  of  our  larger  population.  Let 
me  give  a  table  showing  the  average  to  each 
depositor  in-  a  few  countries : 

United  States    $408 

United  Kingdom    96 

Russia   :   100 

France    83 

Belgium    76 

Italy    80 

Prussia    155 

Germany    87 

Whether  we  take  total  deposits,  number  of 
depositors,  average  to  each  depositor,  or  de- 
posits per  capita,  the  United  States  is  not  only 
far  in  the  lead,  but  increasing  faster  than  any 
other  country. 

Our  deposits  exceed  those  of  Great  Britain, 
France,  Russia,  and  Austria  combined,  and  these 
countries  have  a  population  four  times  as  large 
as  that  of  the  United  States. 

Insurance. — I  have  shown,  Mr.  President, 
that  we  have  nearly  $3,000,000,000  deposited  in 
our  savings  banks  by  almost  7,000,000  deposi- 
tors and  that  we  are  adding  $200,000,000  a  year, 
and  yet  the  insurance  premium  is  but  another 
form  of  savings  bank>  and  we  are  paying  annual 
premiums  and  assessments  upon  life  insurance 
to  the  amount  of  $400,000,000.  Let  me  present 
some  of  the  insurance  figures  since  1893  that 
we  may  compare  low-tariff  times  with  protection 
times.  The  statistics  are  from  the  New  York 
Insurance  Report,  but  refer  to  the  total  business 
@f  &•  United  States  I 


Year. 

Policies  issued. 

it- 
Total  111" 

come. 

Number. 

Amount  of 
insurance. 

1893   

404,236 

$1,058,659,846 

$236,683,206 

1894  .... 

396,843 

985,520,033 

256,624,478 

1895  .... 

366,565 

864,815,534 

266,897,202 

1S96   

350,106 

796,124,326 

279,373,107 

1S97    . . . . 

431,457 

923,804,876 

301,268,179 

1898   

485,735 

1,018,366,027 

320,810,628 

1899  .... 

632,704 

1,304,306,028 

355,946,005 

1900   

687,005 

1,356,769,653 

392,358,941 

1901  .... 

787,747 

1,470,317,887 

437,935,469 

In  1894,  1895,  and  1896  there  was  a  decrease 
each  year  in  number  of  policies  issued  and 
amount  of  insurance  written.  Policies  lapsed 
by  the  thousands,  and  the  loss  was  incalculable. 
Now  look  at  the  figures  since  1896,  a  constant 
and  large  increase  each  year.  More  than  double 
the  number  of  policies  were  written  in  1901 
than  were  written  in  1896.  Nearly  double  the 
amount  of  insurance.  This  is  a  most  significant 
showing.  It  means  hundreds  of  millions  for 
widows  and  orphans  when  the  income  earner  is 
taken  away. 

From  75  to  80  per  cent  of  the  income  of  our 
insurance  companies  is  from  premiums,  and  here 
is  an  addition  of  nearly  $400,000,000  a  year  to 
the  $200,000,000  annual  increase  in  savings,  all 
to  be  loaned  on  bond  and  mortgage,  to  be  put 
into  commercial  use,  and  most  of  it  to  find  its 
way  into  the  laborer's  envelope.  Thirteen  billion 
dollars  of  life  insurance  in  force  in  the  United 
States — more  than  double  that  of  all  the  world 
put  together.  But  this  is  not  all.  We  have 
over  $23,268,047,232  of  fire  risks  in  force,  and 
nearly  $100,000,000  are  paid  in  fire  losses  every 
year. 

But  it  is  not  alone  the  man  who  has  an  in- 
creased income  in  good  times  who  benefits  from 
a  tariff  like  the  Dingley  law.  The  man  with  a 
fixed  income  year  after  year  benefits  relatively 


IT 


M  »»  mneh..  la  iw4ari#f  times  U  k  mlhi 
upon  by  every  relative  and  friend  who  is  out  of 
work,  and  his  income  is  cut  dov/n  correspon- 
dingly. Every  man  who  was  "touched"  a  dozen 
times  a  week  in  1895  and  1896  appreciates  this 
point  in  these  days  when  there  are  no  appeals 
from  broken  and  hard-luck  sources. 
Foreign   Commerce,  —  I   have  given 


Year  ending 
June  30 — 


Imports  and  exports  of  merchandise,  1890-1901, 


glimpses  of  our  domestic  trade  under  the  Dingley 

tariff  and  the  wonderful  advances  we  have  made 
under  protection.  How  about  our  foreign  trade 
—the  sale  of  our  surplus  abroad?  In  order  that 
we  may  consider  the  matter  intelligently,  I  pre- 
sent a  table  showing  our  exports  and  imports 
since  1890,  taking  my  figures  from  the  Bureau 
of  Statistics  of  the  Treasury  Department : 


Imports. 


Exports. 


1890 
1891 
1892 
1893 
1894 
1895 
1896 
1897 
1898 
1899 
1900 
1901 


$789,810,409 
844,916,196 
827,402,462 
866,400,922 
654,994,622 
731,969,965 
779,724,674 
764,730,412 
616,049,654 
697,148,489 
849,714,329 
823,171,185 


$857, 
884, 
1,030, 
847, 
892 
807 
882 
1,050 
1,231 
1,227 
1,394 
1,487 


828,684 
480,810 
278,148 
665,194 
,140,572 
,538,165 
,606,938 
,993,556 
,482,330 
,023,302 
,479,214 
,764,991 


Total  imports 
and  exports. 


$1,647 
1,729 
1,857 
1,714. 
1,547 
1,539 
1,662. 
1,815 
1,847 
1,924 
2,244 
2,310 


139,098 
397,006 
680,610 
066,116 
135,194 
508,130 
331,612 
,723,968 
,531,984 
,171,791 
,193,543 
,937,156 


Excess. 


Imports. 


$18,735,728 


Exports. 

$68,518,275 
39,564,614 
202,875,686 

237,145,950 
75,568,200 
102,882,264 
286,263,144 
615,432,676 
529,874,813 
544,764,835 
664,592,826 


The  figures  for  the  fiscal  year  1902,  while 
they  will  show  a  falling  off  in  exports  (owing  to 
our  short  corn  crop  of  last  year  and  the  great 
home  consumption  of  manufactures)  and  an  in- 
crease of  imports,  will  compare  favorably  with 
recent  years.  Under  the  operation  of  the  Dingley 
tariff  we  have  become  the  leading  export  nation 
of  the  world,  passing  Great  Britain,  with  her 
wonderful  prestige  of  centuries.  It  will  be  seen 
that  our  balance  of  trade  differs  very  much  now 
from  the  years  1893  to  1897.  In  1893  the 
balance  was  against  us,  and  for  the  five  years 
from  1893  to  1897,  inclusive,  the  average  was 
only  $175,000,000,  while  during  the  past  five 
years  the  average  has  been  about  $600,000,000, 
making  a  total  favorable  balance  under  the  five 
years  of  the  Dingley  law  of  $3,000,000,000. 

We  are  changing  under  this  trade  balance 
from  a  debtor  nation  to  a  creditor  nation,  if, 
Indeed,  we  have  not  already  doa©  s©„   We  have 


an  immense  freight  bill  to  pay  annually,  large 
interest  disbursements,  and  exchanges  on  ac- 
count of  tourists'  expenses  abroad,  so  that  with 
much  less  than  our  favorable  balance  we  would 
have  to  ship  gold  abroad  in  large  quantities  to 
pay  our  bill,  as  we  have  had  to  do  in  low-tariff 
times.  It  will  be  seen  from  the  table  that  our 
exports  are  nearly  double  those  of  1895.  Nearly 
$1,000,000,000,  or  two-thirds,  are  agricultural 
products,  which  Europe  must  have  regardless  of 
tariffs,  and  yet  it  is  in  exports  of  manufacture 
that  we  have  made  the  largest  relative  gain.  j 
We  are  exporting  double  the  amount  of  manu- 
factured articles  that  we  were  under  the  Wilson- 
Gorman  law,  and  we  are  gaining  markets  in 
every  quarter  of  the  globe  for  every  product  of 
our  mills  and  factories,  and  still  the  free  trader 
keeps  up  the  cry  for  "free  raw  material,"  in 
order  that  we  may  capture  the  markets  of  the 
world,  ignorant  or  forgetful  of  the  fact  that  we 
have  already  99  per  cent  free  raw  material  for 
all  that  enters  into  exports  of  manuf  aetirei , 


18 


Right  feer©  I  want  to  call  attention  to  our 
great  increase  in  imports,  this  increase  consist- 
ing mostly  of  crude  or  partly  manufactured 
articles  which  are  consumed  by  our  manufac- 
turers in  turning  out  their  finished  product. 
Thus  we  see  the  perfect  workings  of  the  Dingley 
law  in  our  exports  and  imports,  It  is  safe  to 
say  that  in  another  half  decade,  if  our  present 
tariff  law  is  undisturbed,  our  exports  will  exceed 
$2,000,000,000  annually,  which,  while  but  a 


trade,  is  still  a  remarkable  exhibition  of  Ameri- 
can progress. 

Gold  and  Silver. — I  now  wish  to  present 
a  table  showing  our  imports  and  exports  of  gold 
and  silver  for  recent  years.  Trade  balances  are 
not  settled  wholly  in  gold.  There  are  credits 
and  exchanges  to  be  considered,  but  I  notice  that 
our  gold  generally  goes  abroad  in  low-tariff 
times  and  comes  back  in  protection  times.  Here 
are  the  figures  under  the  Wilson-Gorman  law 


amount  as  compared  with  our  domestic  I  and  the  Dingley  law  s 

Total  value  of  imports  and  exports  of  gold  and  silver  coin  and  bullion,  2893-1902, 

^    *      -  -  '         -  *•  *  -    .    gold.  "  .  . :  v  „ 


lesr  ending  Jane  30— 


Imports, 

Exports, 

$21,174,381 

$108,680,844 

72,449,119 

76.978,061 

30,384,760 

66,468,481 

33.525,065 

112,409,947 

85,014,780 

40,361,580 

120.391,674 

15,406,391 

88,954,603 

37,522,086 

44,573,184 

48,266,754 

66,051,187 

53,185,177  ' 

Excess  of 


Imports 
over 
exports. 


Exports 

over 
imports. 


1883 

1894 

1895 
1896 
1S97 
1898 
1899 
1900 
1301 


$44,653,200 
104,985,283 
51,432,517 

12,866,010 


$87,506,463 
4,528,942 
30,083,721 
78,884,882 


3,693,575 


SILVER 


tea*  ending  June  30— 

i  I 

Import*         {  Exports. 

••-   '  ■  '4 

•  J 

Excess  of  ex- 
port over 
imports. 

$23,193,252 
13,286,552 
20,211,179 
28,277,186 
30,533,227 
30,927,781 
30,675,056 
35.258,802 
38,386,521 

$40,737,319 
50,451,265 
47,295,286 
60,541,670 
61,946,638 
55.105,238 
56,319,055 
56,712.275 
64,285,180 

$17,544,067 
37,164,713 
27,084,107 
31,764,484 
31,413,411 
24,177,458 
25,643,999 
21,455,973 
27,898,659 

1896  

1901    

Silver  is  a  commodity,  and  the  excess  of  ex- 
ports should  be  added  to  our  trade  balance,  but 
gold  is  the  commodity  or  money  used  in  settle- 
ment. It  will  be  seen  that  in  the  four  years 
1893,  1894,  1895  and  1896  we  exponad  over 
$200,000,000  more  than  we  imported,  while  in 


ported  over  $200,000,000  in  excess  of  the  amount 

exported. 

The  gold  holdings  of  the  United  States  now 
aggregate  $555,000,000,  not  only  the  largest 
amount  of  gold  ever  held  by  the  Treasury,  but 
for  the  first  time  the  outstanding  gold  certifi- 


the  four  years  1897.  1898,  1899. 1900  wo  inv  i  sates  exceed  in  volume  the  amount  of  United 


19 


States  notes  or  greenbacks.  No  longer  ago  than 
1899  the  outstanding  certificates  amounted  to 
only  $34,500,000;  now  they  amount  to  $347,- 
000,000.  In  1892  the  circulation  of  gold  cer- 
tificates rose  to  $171,700,000,.  but  during  the 
free-trade  panic  the  circulation  fell  to  $70,000,- 
000.  Our  $555,000,000  of  gold  is  the  largest 
amount  possessed  by  any  government  in  the 
world. 

Failures.  —  With  such  phenomenal  advances 
in  all  branches  of  business,  with  such  a  great 
amount  of  increased  capital  invested  and  con- 
cerns in  operation,  we  should  almost  expect  to 
find  an  increased  number  of  failures,  for  sus- 
pensions and  failures  in  business  are  as  inevitable 
as  sickness  and  death  in  the  most  healthful  com- 
munities. But  sickness  and  the  death  rate 
depend  to  a  degree  on  sanitary  and  other  condi- 
tions, and  suspension  and  failures  in  business 
depend,  it  would  seem  by  the  figures  I  now  pre- 
sent, on  tariff  conditions. 

I  take  the  following  statistics  of  failures  from 
Dun's  Review : 

Failures. 


were  still  abnormal,  but  1896  was  another  bad 
year  with  nearly  as  many  failures  as  iu  1893, 
though  with  somewhat  lesser  liabilities.  But 
what  a  change  with  the  coming  of  protection! 
Look  at  the  figures  for  the  past  five  years.  The 
amount  of  liabilities  for  the  four  years  1893, 
1894,  1895,  and  1896  average  $229,000,000  a 
year,  while  for  the  four  years  1898,  1899,  1900, 
and  1901  they  average  only  half  as  much  in  spite 
of  the  enormous  increase  in  business  enterprises. 
No  argument  I  could  make  would  teach  a  greater 
lesson  than  the  figures  themselves. 


Calendar  year. 


1892 
::  1893 
1894 
-1895 
1896 
-  1897 
■  1898 
1899 
1900 
1901 


Number. 

Liabilities. 

10,344 

$114,044,167 

15,242 

346,779,889 

13,885 

,  172,992,856 

13,197 

173,196,060 

15,088 

226,096,834 

13,351  J 

154,332,071 

12,186 

130,662.399 

9,337 

90,879,889 

10,774  * 

138,495,673 

11,002 

113,092,376 

These  I  assert  are  most  significant  figures. 
In  1892  the  number  and  amount  of  liabilities 
F/ere  normal.  In  1893,  with  the  assurance  of 
some  kind  of  a  free-trade  law,  came  panic  and 
K.  The  figures  tell  the  story.  In  1894  and 
1895  the  figures,  while  a  decrease  from  1893, 


Average  Rate  of  Duty.— I  now  want  to 

call  attention,  Mr.  President,  to  the  free-trade 
assertion  that  the  rates  of  duty  under  the 
Dingley  law  are  exorbitant. 

The  average  ad  valorem  rate  of  duty  is  not 
determined  by  legislation,  but  by  actual  imports. 
The  ignorant  free  trader,  in  a  spasm  of  assumed 
indignation,  may  declare  that  Dingley  duties  are 
the  highest  ever  imposed,  but  he  either  does  not 
know  what  he  is  talking  about  or  he  is  deliber- 
ately trying  to  deceive. 

It  will  be  both  interesting  and  instructive  to 
see  just  what  the  rate  has^een  under  the  Dingley 
law,  and  compare  it  with  the  rate  of  preceding 
laws. 

For  the  four  years  ending  June  30, 1901,  the 
average  ad  valorem  rates  of  duty  on  all  imports 
were:  1898,  24.77;  1899,  29.48;  1900,  27.62, 
and  1901,  28.91  per  cent.  For  1902  the  rate 
will  be  about  29  per  cent.  So  we  may  safely 
average  the  rate  under  the  five  years  at  28  per 
cent.  This  compares  with  about  21  per  cent 
under  the  three  years  of  the  Wilson-Gorman  Act. 
But  how  does  it  compare  with  former  protective 
years?  From  1870  to  1890  the  rate*  mm  a* 
follows t 


20 


1870 

1871 

  37 

1872 

  26.95 

1873 

  26.88 

1874 

  28.20 

1875 

  30.19 

1876 

  26.68 

1877 

  27.13 

1878 

  28.97 

1879 

. .   29.07 

1880 

  29.75 

1881 

  30.11 

1882 

  29.92 

1883 

  28.44 

1884 

 30.59 

1885 

  30.13 

1886 

  31.02 

1887 

1888 

1889 

This  is  an  average  of  over  31  per  cent  for  the 
twenty  years.  This,  then,  disproves  the  state- 
ment that  Dingley  rates  are  excessive.  In  only 
four  years  out  of  the  twenty  —  from  1870  to 
1890  — were  they  so  low  as  the  average  Dingley 
rate.  This  proves  that  tariff  framing  is  a 
science,  and  that  the  Dingley  tariff  is  not  only  a 
wise  and  equitable  measure,  but  a  scientific 
measure. 

Again,  as  regards  duties  collected.  I  have  al- 
ready shown  that  as  a  revenue  measure  the 
Dingley  law  is  giving  us  a  large  and  ample 
amount  of  duty.  But  how  does  it  average  among 
the  people?  The  per  capita  duty  collected  under 
the  Dingley  law  has  been  as  follows :  1898, 
$1,99;  1899,  $2.72;,  1900,  $3.01;  1901,  $3.06, 
and  for  1902  it  will  be  about  $3.10.  So,  leaving 
out  the  first  year,  when  the  amount  of  duty  was 
low  and  abnormal,  we  have  an  average  per  ca- 
pita annual  duty  of  less  than  $3. 

Now,  taking  the  years  from  1870  to  1890,  we 
Haiti*  p«*  eapita  toy  to  U  — 


**   5.13 

"  " . '   5.23 

  4.44 

 ...7.   3.75 

  3.51 

  3.22 

  2.77 

  2.67 

  2.73 

 .-   3.64 

\[   3.78 

  4.12 

.........   3.92 

....... \.   3.47 

.*   3.17 

  3.30 

  3.65 

  3.60 

  3.60 

or  an  average  duty  of  $3.73  per  capita.    And  so 
another  "  burden  of  the  people"  is  dissipated. 

Even  if  the  entire  tariff  tax  were  borne  by 
consumers,  which  is  by  no  means  the  case,  we 
are  each  taxed  only  $3  a  year  (and  actually  not 
more  than  $2)  for  the  blessings  and  benefits  of 
Dingleyism. 

The  proportion  of  the  free  imports  is  nearly 
50  per  cent,  and  was  over  50  per  cent  under  the 
McKinley  law,  while  from  1870  to  1890  it  was 
only  about  30  per  cent.  So,  whether  we  con- 
sider the  Dingley  law  from  the  standpoint  of. 
duty  rate,  per  capita  duty,  or  per  cent  of  free 
imports,  we  find  it  to  be  the  most  just  and  equi- 
table measure  ever  framed. 

Some  per  Capita  Figures.— To  show 
that  our  great  progress  under  the  Dingley  law 
has  far  outstripped  our  rate  of  increase  in  popup 
lation,  I  will  present  a  few  per  capita  statistics, 
as  an  example  of  all,  from  1896  to  and  including 
1901? 


21 

Per  capita  statistics. 


Year. 


1896 
189T 
1898 
1899 
1900 
1901 


Popula- 
tion. 

Amount  of  money 
in  United  States 
July  1. 

Money  in  circula- 
tion July  1. 

Debt,  less  in  Treas- 
ury, July  1. 

70,25-1,000 

$25.62  I 

$21.44 

$13.60 

71,592,000 

26.62 

22.91 

13.78 

72,947,000 

28.43  | 

25.19 

14.08 

74,318,000 

29.47  | 

25.62 

15.55 

76,303.387  | 

30.66 

26.93 

14.52 

77,647,000  j 

31.98  | 

2S.02 

13.45 

u  co 


$0.49 
.48 
.47 
.54 
.44 
.38 


Post-office. 


CO 

3 

a 

Q 

> 

H 

$12.29 

$1.17 

14.42 

1.15 

16.59 

1.22 

16.20 

1.28 

17.96 

,1.34 

18.81 

1.44 

$1.34 
1.34 
1.39 
1.41 
1.46 
1.49 


Prices.  — Mr.  President,  I  have  shown  many 
of  the  blessings,  benefits,  and  advantages  of 
living  under  the  Dingley  tariff.  Are  there  any 
disadvantages?  At  once  I  hear  the  [free  trader 
try,  "How  about  prices?  Isn't  it  costing  us  more 
to  live  than  we  can  make  in  increased  earnings?" 
I  answer,  No!  .The  savings  banks  deposits  of 
$200,000,000  a  year  answer,  No  !  The  $400,000,- 
000  annual  premiums  on  life  insurance  answer, 
No !  The  mortgages  released  answer,  No  !  The 
installments  paid  on  the  home  and  the  furniture 
answer,  No !  The  luxuries  [enjoyed  answer,  No ! 
And  all  these  come  out  of  the  surplus  after  the 
necessaries  have  been  provided. 

When  we  have  low  prices  and  low  wages  and 
no  wages,  there  is  no  surplus  and  there  are  no 
luxuries.  It  is  hard  enough  scraping  to  get  the 
necessaries.  But  prices  of  many  things  have 
risen  while  other  prices  have  fallen.  And  right 
here  let  me  emphasize  the  fact  that  the  price 
of  the  greatest  and  most  extensive  commodity  in 
the  land,  a  commodity  that  comprises  90  per 
cent  of  all  'production  —  American  labor  —  has 
increased  since  the  Dingley  law  went  into  opera- 
tion fully  50  per  cent. 

I  have  shown  that  the  railroad  employees  of 
the  country  are  getting  50  per  cent  more  pay 
than  in  1895-96.   I  have  shown  that  the  work-  i 


ingmen  of  all  classes  in  Massachusetts  are  get- 
ting from  40  to  50  per  cent  more  earnings  than 
in  1896.  I  have  shown  that  the  farmers  of  the 
country  are  getting  from  50  to  100  per  cent 
more  for  their  products  than  in  1896.  And  so  I 
believe  that  the  income  of  the  people  of  the 
United  States  is  to-day  much  more  than  50  per 
cent  greater  than  it  was  in  the  summer  of  1896 
when  one  of  the  framers  of  the  Wilson-Gorman 
law,  under  which  we  were  then  trying  to  exist, 
was  asking  the  people  to  make  him  President  in- 
stead of  William  McKinley. 

No ;  we  are  not  living  in  cheap  times.  Pro- 
tection does  not  breed  cheapness.  It  tends  to 
make  prices  equitable  to  both  producer  and  con- 
sumer, but  the  millennium  has  not  yet  come,  and 
so  we  find  occasional  wrong  and  injustice,  and 
sometimes  the  price  of  a  single  commodity  will 
be  exorbitant  for  a  period  till  the  abnormal  con- 
ditions are  adjusted  by  the  inexorable  process  of 
demand,  supply,  and  competition.  Sometimes  it 
is  one  thing,  sometimes  it  is  another.  It  may  be 
coal  or  meat,  or  it  may  be  ice  or  eggs,  but  what- 
ever the  commodity  or  the  cause,  it  is  only  tem- 
porary. 

But  suppose  steel  rails  are  $5  or  $10  a  ton 
more  than  they  were  in  1896.  Is  the  railroad 
passenger  paying  any  more  for  his  fare?    Is  the 


freight  shipper  paying  any  more  for  carrying  his 
products?  No;  they  are  paying  less,  and  the 
dividends  to  stockholders  are  greater. 

Protection  is  the  great  leyeler ;  but  it  levels 
up,  not  down.  I  now  want  to  present  the  follow- 
ing from  Dun's  Review,  an  absolutely  impartial 
source.    It  explains  itself  fully : 

Prices  Proportioned  to  Consumption. 

— In  the  following  table  the  course  of  prices  of 
commodities  is  shown,  with  due  allowance  for  the 
relative  importance  of  each.  Quotations  of  all  the 
necessaries  of  life  are  taken,  including  whisky  and 
tobacco,  and  in  each  case  the  price  is  multiplied 
by  the  annual  per  capita  consumption,  which  pre- 
cludes any  one  commodity  having  more  than  its 
proper  weight  in  the  aggregate.  For  example,  the 
price  of  a  bushel  of  wheat  is  multiplied  by  0.55, 
representing  the  annual  per  capita  consumption  of 
4  2-3  bushels  for  food,  and  the  remainder  as  al- 
lowance for  seed.  The  price  per  pound  of  coffee 
is  taken  9  times,  of  cheese  2.3,  of  chemicals  only 
fractions  of.  an  ounce  in  some  cases. 

Thus,  wide  fluctuations  in  the  price  of  an  ar- 
ticle little  used  do  not  materially  affect  the  in- 
dex, but  changes  in  the  great  staples  ha^e  a  large 
influence  in  advancing  or  depressing  the  total.  For 
convenience  of  comparison  and  economy  of  space 


the  prices  are  grouped  in  seven  classes:  Bread- 
stuffs  include  many  quotations  of  wheat,  corn, 
oats,  rye,  barley,  beans,  and  peas;  meats  include 
live  hogs,  beef,  sheep,  and  many  provisions,  lard, 
tallow,  etc.;  dairy  and  garden  products  embrace 
eggs,  vegetables,  fruits,  milk,  butter,  cheese,  etc.; 
other  food  includes  fish,  liquors,  condiments, 
sugar,  rice,  tobacco,  etc.;  clothing  covers  the  raw 
material  of  each  industry,  and  many  quotations 
of  woolen,  cotton,  silk,  and  rubber  goods,  as  well 
as  hides,  leather,  boots,  and  shoes;  metals  in- 
clude various  quotations  of  pig  iron,  and  partially 
manufactured  and  finished  products,  as  well  as 
the  minor  metals,  tin,  lead,  copper,  etc.,  and  coal 
and  petroleum;  miscellaneous  includes  many  grades 
of  hard  and  soft  lumber,  lath,  brick,  lime,  glass, 
turpentine,  hemp,  linseed  oil,  paints,  fertilizers, 
and  drugs. 

The  chief  advance  in  the  general  level  as  com- 
pared with  the  low-record  prices  of  July  1,  1897, 
will  be  found  in  the  first  three  classes.  Short 
crops  due  to  drought  and  the  seasonable  advance 
in  eggs  and  similar  articles  make  the  present 
position  of  food  stuffs  abnormal.  The  third  deci- 
mal is  given  for  accuracy  of  comparison,  thus 
$101,587  representing  $101.58  and  seven-tenths  of 
a  cent.  This  figure  does  not  purport  to  show  the 
exact  average  annual  cost  of  living  on  January  1, 
1902,  because  wholesale  prices  are  taken  and  all 
luxuries  omitted.  Its  economic  value  is  in  show- 
ing the  percentage  of  advance  or  decline  from 
month  to  month. 


Index  figure  of  prices,  January  1. 


Year. 


1888 
1889 
1890 
1891 
1892 
1893 
1894 
1895 
1896 
1897 
1S98 
1899 
1900 
1901 
1902 


Bread- 
stuffs. 

Meats. 

Dairy 
and  gar- 
den. | 

Other 
food. 

Cloth- 
ing. 

Metals. 

Miscel- 
laneous. 

Total. 

$18,565 

|  $8,920 
1  S.705 

1 

$15,030  | 

$10,340 

$15,140 

$17,330 

$14,577 

$99,902 

18.195 

14.670  | 

10.480 

15.170 

17.360 

14.496 

99.076 

13.765  1  7.620 

i     12.675  | 

9.935 

14.845 

16.240 

15.111 

90.191 

19.725 

|  7.810 

16.270  | 

10.215 

14.135 

15.875 

14.217 

98.247 

17.700 

|  7.895 

|     13.180  | 

9.185 

13.430 

14.665 

13.767 

89.822 

15.750 

|  9.315 

15.290  | 

9.595 

13.900 

15.985 

14.320 

94.155 

13.530 

|  8.655 

|      13.945  | 

8.945 

12.SS0 

14.565 

13.512 

86.032 

14.311 

|  8.359 

j     12.196  | 

8.607 

11.8S6 

12.026 

''IS.  607 

80.992 

11.380 

|  7.540 

|      10.969  | 

8.898 

12.787 

12.803 

13.403 

77.780 

11.729 

|  7.327 

|  10.456 

8.170 

12.407 

13.014 

12.399 

75.502 

13.511 

|  7.336 

|  12.371 

8.312 

14.654 

11.572 

12.184 

79.940 

13.816 

1  7.520 

j  11.458 

9.096 

14.150 

11.843 

12.540 

SO.  423 

13.254  1  7.258 

|  -13.702 

9.200 

17.484 

18.085 

16.312 

95.295 

14.486 

|  8.407 

|  15.556 

9.504 

16.024 

15,810 

15.881 

95.668 

20.002 

|  9.670 
1  • 

|  15.248 
1 

8.952 

15.547 

15.375 

16.793 

1 

101.587 

Employment  is  What  Counts.— It  will 
be  seen  that  the  total  is  but  little  above  that -of 
1888  and  1889.  Curiously,  too,  the  index  figure 
for  1892  is  less  than  for  any  of  the  four  preced- 


ing years  and  lower  than  the  year  following,  an 
yet  in  1892  we  elected  a  low-tariff  Administra 
tion  in  all  three  branches  of  the  Government  be 
cause  of  the  false  cry  of  high  prices.    In  thii 


connection  I  want  to  quote  from  an  address  cte<  '    On  Apr*8  1,  the  Interest-bearing  debt  of 

Hvered  by  T.  2L  Cowles,  editor  of  the  American  1  ^"1^  STL  7VThT,68C\' 

j  t0  the  war  with  Spain  the  debt  was  increased,  so 

Economist,  before  the  Society  of  Political  In- I  that  on  November  19  1899,  its  highest  point  the 

quiry  at  Morristown,  N.  J,  April  11,  1902.  And  T*  ^  "*  ^'T^'   Tw°  years  ^ 
1         *  j  on  November  15,  1901,  tbe  debt  stood  at  $054,- 

right  here  I  want  to  acknowledge  my  indebted-  027,350,  showing  a  reduction  of  $92,021,870. 


ness  to  the  American  Economist  and  the  Amer- 
ican Protective  Tariff  League  for  much  of  the 
information  I  have  used  in  this  speech- 
Speaking  of  prices,  Mr.  Cowles  said : 

The  American  wage-earner  is  not  finding  very 
much  fault.  Zealous  friends  on  the  free-trade  side 
are  doing  their  utmost  to  convince  him  that  be  i  against  the  Treasury  during  the  next  seven  years, 
is  being'  crucified  for  the  benefit  of  the  trusts,  •  Kas  been  Pai<J»  so  that,  broadly  speaking,  the  pub- 
and  that  the  cost  of  living  has  far  exceeded  any  lie  tieDt  within  two  years  has  bees  reduced  by  thf 
gain  made  in  the  shape  of  better  wages,  but  they  jj  sum  of  -$148>fS?0,2&4. 
are  not  making  very  much  headway  in  carrying 


This  statement  covers  only  the  face  amount  of 
the  debt.  Interest  is  as  much  a  part  of  the"  debt 
as  is  the  principal,  and  this  feature  of  the  debt 
has  been  anticipated  and  paid  to  an  amount  nearly 
as  great  as  has  been  the  reduction  of  the  prin- 
cipal. By  the  application  of  $43,582,004  of  the 
public  moneys,  interest  to  the  amount  of  $54,5 48, - 
424,  which  would  otherwise  have  foeen  a  charge 


that  conviction  to  the  mind  of  the  wage-earner. 
In  reply,  he  has  only  to  point  to  the  enormous  in- 
crease of  nearly  100  per  cent  in  the  last  five 
years  of  deposits  in  the  savings  banks  through- 
out the  country,  and  to  an  equal  increase  of  in- 
vestments in  building  and  loan  associations.  That 
certainly  would  not  seem  to  indicate  that  the 
wage-earner  was  getting  very  greatly  the  worst 
of  the  situation. 


But  this  by  no  means  tells  the  wliols  story 
The  cash  fund  in  the  "Treasury  has  risen  from 
$226,166,944  on  April  t,  1898,  to  over  $350,000,- 
000  to-day.  In  a  single  year  the  annual  interest 
charge  has  been  reduced  from  $40,847,884  to 
$28,471,228,  and  yet  Mr.  Cleveland,  in  times  of 

One  thing  the  wage-earner  knows-that  it  is   ^  ^  ^#  3°W  Mtt  td 

not  so  much  the  price  of  an  article  as  the  ability  |  $262,000,000,  and  the  bonds  he  sold  bore  4  and 
to  pay  the  price  that  concerns  him.    If  he  can  !  K  nAr  •  fav,,.A  ,     n  . 

buy  a  suit  of  clothes  for  $4  and  does  not  have  the  t    ***  ^  Duri^         P*8*  ?**  <* 

$4  in  his  pocket,  the  price  is  of  very  little  cou«  [ two  mwh  of  our  debt  has  bean  refunded  on  a  2 

sequence  to  him;  but  if  the  suit  of  clothes  costs 
$5  and  he  now  has  $6  in  his  pocket,  he  can  look 
upon  the  situation  with  perfect  complacency. 
Statistics  of  the  census  coveriug  the  year  1900 
show  in  every  State  of  the  Union-  thus  far  enu- 
merated not  only  an  increase  in  the  general  rate 
of  wages,  but  a  very  much  larger  increase  in  the 
gross  sum  of  wages  paid  out.  That  is  to  say, 
while  the  per  capita  rate  of  wages  has  undoubt- 
edly increased  in  the  period  of  prosperity  brought 
about  by  protection,  the  gross  sum  of  employ- 
ment has  enormously  increased.  That  is  what 
counts. 

National  Finances,  «*- 1  have  shown  what 
protection  has  done  for  agriculture  uA  mm- 
factures,  for  our  railroads-  oar  foreign  com- 
merce.   I  now  want  to  Bote  Its  effect  wpcm  mt 

national  debt  and  fvumtm.  From  ®*  h&  re- j  And  wk*  of  tbe  people  ef  the  United  States? 
m  Q*  the  Secretary  nl  tfeo  I        j  ffee  Sacr^r  m%m  Us*  tfeep  tom  » c**fc  fc 

the  mmm.  s  ■  j  ^  a^tofe!  toft*  of  mm  <mmMlfjm,  m& 


per  cent  basis,  and  to-day  Uncle  Sam's  credit  is 
such  that  fee  could  borrow  a  billion  at  2  per  cent. 

But  Uncle  Sam  is  not  borrowing  in  protection 
times.   He  is  buymg  his  own  bonds,  canceling 
his  debt,  and  reducing  his  Interest  charges-  He 
has  $200,000,000  in  the  Treasury  over  and  above 
the  $150,000,000  gold  reserve  legally  required 
There  is  la  escalation  $2,246,300,542,  or  $28.7' 
per  capita,  against  a  circulation  of  $1,594,19-5 
479  in  188§,  mi  a  per  capita  circulation  oi 
$21.44  in  1898.   There  is  an  estimated  surplus 
of  SOyGOOjOG©  for  the  fiscal  year  1902  in  spite 
of  a  large  tedris&mfa  teatlon. 


24 


in  the  savings  banks  there  are  deposits  of  nearly 
$3,000,000,000>iore.  Remarkable  figures  these. 
Do  you  want  any  greater  proof  that  low  tariff  is 
a  debt  maker  and  protection  a  debt  payer? 

Astounding  Statistics.  —  American  finan- 
cial and  commercial  statistics  are  to-day  the 
wonder  of  the  world.  Our  wealth  of  $100,000,- 
000,000,  or  $1,250  per  capita ;  our  net  debt  of 
less  than  $1,000,000,000,  or  only  $12.50  per 
capita;  our  savings  bank  and  loan  association 
deposits  of  $3,000,000,000;  our  national  bank 
deposits  of  $3,000,000,000  more ;  our  life  insur- 
ance of  $13,000,000,000 ;  our  annual  fire  insur- 
ance risks  of  $20,000,000,000 ;  our  bank  clear- 
ings of  $100,000,000,000 ;  our  manufactures  of 
$15,000,000,000;  our*  agricultural  returns  of 
$8,000,000,000 ;  our  favorable  balance  of  trade 
of  $600,000,000;  our  Government  receipts  of 
$700,000,000  and  expenditures  of  $600,000,000 ; 
our  Treasury  fund  of  $350,000,000 ;  our  more 
than  $2,000,000,000  of  money  in  circulation; 
our  $150,000,000  (coining  value)  product  of  gold 
and  silver ;  our  1,500,000,000  railroad  earnings, 
and,  greatest  of  all,  our  actual  turnover  in  com- 
merce, trade,  transportation,  and  general  busi- 
ness of  more  than  $30,000,000,000— these  are 
figures  to  astonish  the  world. 

We  are  the  only  nation  of  importance  paying 
off  our  debt.  We  could  sell  $1,000,000,000  of 
bonds  at  2  per  cent  in  twenty-four  hours.  Money 
is  accumulating  in  our  National  Treasury  faster 
than  we  can  use  it.  We  are  paying  $140,000,900 
a  year  in  pensions.  Since  1860  we  have  dis- 
bursed nearly  $3,000,000,000  in  this  way ;  have 
paid  off  nearly  $2,000,000,000  of  debt,  besides 
paying  $2,750,000,000  of  interest. 

These  are  remarkable  figures  for  one  of  the 
youngest  nations  of  the  earth.    What  they  will 


tion  cannot  even  be  estimated.  With  a  rehabili- 
tated American  merchant  marine,  an  isthmian 
canal,  continued  protection,  peace,  and  prosperi- 
ty the  future  must  hold  even  more  wonderful 
results  for  the  United  States  than  any  that  have 
transpired. 

How  We  Compare  with  the  Rest  of 
the  World.  —  Our  progress  under  the  Dingley 
tariff  has  been  such  that  we  no  longer  compare 
the  United  States  with  other  nations,  but  with 
all  the  rest  of  the  world  combined.  With  less 
than  5  per  cent  of  the  population  and  only  7  per 
cent  of  the  area,  we  are,-nevertheless,  about 
equal  industrially  to  half  the  remainder  of  man- 
kind. 

We  equal  or  surpass  all  the  rest  'of  the  world 
in  corn,  cotton,  eggs,  petroleum,  leather  products, 
copper,  and  forest  products. 

Of  the  following  we  produce  two-thirds  as 
much  as  the  rest  of  the  world :  Coal,  pig  iron, 
steel,  and  three-fifths  of  the  total  food  and  agri- 
cultural products  and  manufactures. 

We  produce  one-half  as  much  as  ihe  rest  of 
the  world  in  silver,  iron  ore,  fish ;  one-third  as 
much  in  gold,  wheat,  oats,  hay,  butter,  and 
cheese;  one-fourth  as  much  in  hops  and  beer;  ^ 
one-fifth  to  one-tenth  as  much  in  barley  and 
wool. 

We  consume,  reckoned  in  value,  twice  as 
much  corn  as  all  the  rest  of  the  world  combined, 
one-fifth  as  much  wheat,  one-third  as  much  oats, 
one-third  as  much  cotton,  one-fifth  as  much 
wool,  one-third  as  much  sugar,  one-half  as  much 
fish,  nearly  as  much  coffee,  one-fourth  as  much  | 
tea,  about  three-fifths  as  much  meat  —  all  food 
and  agricultural  products. 

We  have  one-third  as  much  wealth  as  all  the  2 
rest  of  the  world,  one-third  as  much  gold,  one-  | 


be  in  another  century  or  even  in  another  genera- 1  fifth  as  much  silver,  one-tenth  as  many  sheepj 


25 


One-third  as  many  cows,  as  much  forest  area, 
two-thirds  the  railroad  mileage,  or,  counting 
total  track,  about  as  much  as  all  the  rest  of  the 
world  combined.  We  have  twice  as  much  life 
insurance  in  force,  one-half  as  much  savings- 
bank  deposits,  we  spend  two-thirds  as  much  for 
education,  we  have  one-fourth  the  spindles  in 
operation,  nearly  one-fourth  as  much  shipping, 
one-fourth  as  many  exports,  about  one-tenth  as 
much  'revenue  and  expenditures,  and  less  than 
one-thirtieth  as  much  debt. 

Taking  everything  into  consideration  we  pro- 
duce and  consume  about  half  as  much  as  the  rest 
of  the  world  combined.  Remember,  the  com- 
parison is  not  with  the  world,  but  with  all  the 
rest  of  the  world,  besides  ourselves. 

There  is  not  a  much  better  index  to  a  country's 
condition  than  the  freight  carried.  According 
to  the  junior  Senator  from  New  York  [Mr. 
Depew],  who  should  be  an  unquestioned  authority 
on  railroad  business,  the  freight  carried  on  the 
railroads  of  the  United  States  equals  the  freight 
carried  on  all  the  other  railroads  of  the  earth 
and  by  all  the  ocean  shipping.  To  this  should 
be  added  our  immense  lake  and  coast  trade. 

Greatest  of  all  Consumers.  —  Ex-Speaker 
Reed-  estimated  that  the  people  of  the  United 
States,  when  our  population  was  about  70,000,- 
000,  were  equal  as  consumers  —  as  a  market  for 
our  own  and  the  world's  production  —  compared 
with  the  rest  of  the  world,  to  700,000,000.  The 
same  comparison  seems  to  hold  good  to  day, 
and  our  77,000,000  people'  are  equal  to  770,000,- 
000,  or  one-half  the  rest  of  the  world.  That  is, 
every  man,  woman,  and  child  in  the  United 
States  is  equal  to  ten  persons  outside  of  the 
United  States,  particularly  as  consumers  of  our 
own  and  the  world's  products  of  agriculture, 
mining,  and  manufacture. 


As  regards  power  of  production,  Mulhall  has 
shown  that  a  farm  hand  in  the  United  States 
does  as  much  as  two  in  the  United  Kingdom, 
three  in  Germany,  five  in  Austria,  and  seven  in 
Russia.  The  farm  laborers  of  Europe  do  nine 
times  the  work  to  get  double  the  result  of  the 
farm  laborers  in  the  United  States.  That  is,  it 
takes  four  and  one-half  Europeans  to  equal  one 
American.  Extend  the  comparison  to  Asia  and 
Africa  and  we  find  that  the  average  United 
States  producer  is  equal  to  ten  the  world  over, 
outside  of  our  own  country.  This  comparison  is 
emphasized  by  our  coal  consumption  and  steam 
power,  and  finally  by  our  products  of  manu- 
facture. 

We  are  to-day  practically  independent  of  the 
rest  of  the  earth.  In  a  few  years  we  shall  raise 
our  own  sugar  and  fibers,  manufacture  our  own 
silk,  and,  in  fact,  we  shall  produce  almost  every- 
thing used  by  mankind.  ■> 

The  conclusion,  then,  is  warranted  that  in  an- 
other generation,  if  the  present  system  of  pro- 
tection is  continued,  the  people  of  the  United 
States  and  Territories  will  equal  or  surpass  in 
production,  consumption,  and  wealth  the  peoples 
of  the  rest  of  the  world  combined. 

The  Foreign  and  Home  Market  I 

quote  the  following  from  the  American  Econo- 
mist showing  the  relative  value  of  the  foreign 
and  home  market : 


Do  the  people  who  spend  so  much  brain  power 
in  seeking  means  for  the  enlargement  of  our  for- 
eign trade  ever  stop  to  think  what  a  prodigiously 
big  thing  they  lose  sight  of  when  in  search  of  an 
infinitely  smaller  thing?  Do  they  realize  that 
while  our  foreign  trade  in  manufactured  articles 
of  domestic  production  was  $433,851,756  in  1900, 
the  total  volume  of  our  internal  tirade  for  that 
year  was  over  $30,000,000,000?  It  was  estimated 
three  years  ago  that  our  commodities  carried  from 
one  part  of  the  country  to  another  for  sale  at 
home  were  worth  about  $28,000,000,000  a  year, 
I  which  waa  thirteen  times  the  value  of  our  entire 


21 


foreign  trade,  and  that  the  citizens  of  this  coun- 
try buy  $40  worth  of  home  products  for  every 
dollar  they  expend  for  foreign  commodities.  The 
foreign  trade  of  the  United  States,  therefore,  is 
of  small  importance  in  comparison  with  its  _home 
commerce. 

According  to  the  statistics  of  the  Twelfth  Cen- 
sus, the  gross  value  of  our  manufactured  products, 
which  amounted  in  1900  to  over  $13,000,000,000, 
fairly  represented  the  volume  of  our  internal  trade 
in  manufactured  articles,  exclusive  of  the  retail-, 
ing  of  the  products  of  the  manufacturers,  which 
represents  transactions  involving  an  amount  at 
least  as  great,  and  consists  of  the  reselling  of 
these  products  as  they  pass  into  the  possession 
of  the  ultimate  consumer.  The  total  money  vol- 
ume of  the  wholesale  and  retail  transactions  in 
the  manufactured  products  of  the  United  States 
is  unquestionably  greater  than  the  volume  of  in- 
ternational trade  of  all  the  principal  countries  of 
the  world,  which  equals  the  sum  of  $20,005,884,- 
354,  exports  and  imports  added  together.  This 
does  not  include  our  immense  home  trade  in  raw 
materials  that  are  not  manufactured.  It  is  likely 
that  the  volume  of  our  total  internal  trade  in 
1900  was  over  $30,000,000,000. 

The  value  of  our  internal  commerce  in  propor- 
tion to  population  is  greater  than  that  of  any 
other  country,  because  Americans  spend  more  for 
food,  clothing,  rent,  and  many  comforts  of  life 
than  any  other  people.  At  the  end  of  the  last 
century  the  wealth  of  the  United  States,  es- 
timated at  $94,000,000,000,  was  equal  to  the  com- 
bined wealth  of  Russia,  Italy,  and  Spain,  was 
double  that  of  Germany,  and-  nearly  double  that  of 
France  and  a  fourth  larger  than  that  of  the  United 
Kingdom. 

The  point  of  the  whole  matter  is  the  comparison 
between  the  value  of  our  own  trade  in  our  own 
great  market,  and  the  value  of  our  trade  with  all 
the  rest  of  the  world,  viz.:  Total  internal  trade 
for  the  year  1900,  $30,000,000,000;  total  foreign 
trade  for  the  year  1900,  $2,201,282,823— more  than 
14  to  1.  Is  it  not  about  time  that  the  domestic 
producer  left  off  worrying  about  the  $1,  which  he 
already  has,  «nd  can  always  keep — that  is  to  say, 
the  foreign  trade  that  cannot  grow  less,  for  we 
have  that  to  sell  which  the  world  must  have  and 
will  continue  to  buy — and  devote  his  attention 
more  assiduously  to  the  $14,  which,  as  experience 
shows,  may  easily  grow  less  as  the  result  of  eco- 
nomic blundering,  but  must  inevitably  increase  if 
w^  keep  to  the  safe  line  of  looking  after  the  great 
home  market.  In  short,  can  we  afford  to  risk  the 
certainty  of  a  trade  worth  $30,000,000,000  in  the 
doubtful  scramble  for  a  trade  worth  less  than 
one-fourteenth  of  that  amount?   The  study  should 


be  how  not  to  decrease  the  purchasing  power  of  a 

population  that  every  year  consumes  $30,000,000,- 
000  of  domestic  products. 

Our  sales  to  the  world  outside  of  ourselves 
amount  to,  say  $1,500,000,000 ;  our  sales  at 
home  amount  to  $30,000,000,000.  That  is  the 
relative  value  to  us  of  the  world's  markets  and 
our  home  market.  There  are  freights,  commis- 
sions, and  profits  to  be  considered  in  foreign 
sales,  while  in  home  sales  .all  transactions  add 
to  the  income  of  the  people. 

Education.— Mr.  President,  there  have  been 
more  scholars  in  our  public  and  private  schools 
and  colleges  the  past  year  than  ever  before  in 
our  history.  I  mean  not  only  in  the  aggregate, 
but  relatively  to  population.  There  was  hardly  a 
city  in  the  country  whose  school  facilities  were 
adequate  last  fall  to  accommodate  the  scolars 
who  sought  admission.  Many  of  our  private 
schools  have  been  compelled  to  turn  away  ap- 
plicants, and  the  entering  classes  of  our  colleges 
showed  record-breaking  registry. 

This  was  not  the  condition  in  1895-96.  What 
has  brought  about  the  change?  In  the  first 
place,  it  is  not  "necessary  for  so  many  children 
to  work  in  the  mill.  In  the  second  place,  the 
prosperous  man  need  not  keep  the  children  from 
school  for  lack  of  clothes  and  shoes.  Again,  it 
costs  money  to  go  through  college  and  technical 
schools.  This  all  brings  up  the  question  of  so- 
called  child  labor.  "Is  it  not  on  the  increase?" 
my  free-trade  friend  will  ask.  I  answer  that  the 
census  report  shows  an  increase  in  some  sections 
of  the  South  and  West,  but  large  decreases  in 
other  sections.  The  very  increased  demand  for 
child  labor  when  our  adults  are  fully  employed  is 
in  itself  an  indication  of  increased  prosperity. 
While  child  labor  should  undoubtedly  be  regulated 
by  law,  it  is  nevertheless  a  blessing  when  tne 


27 


father  is  dead  or  disabled  that  the  boys  and  girls 
can  get  good  wages  and  contribute  to  the  sup- 
port of  the  family. 

But  the  conditions  are  so  immeasurably  im- 
proved over  the  years  of  the  Wilson-Gorman 
tariff  that  I  cannot  refrain  from  calling  your 
attention  to  the  fact.  We  have  the  best  system 
of  public  schools  "in"  the  world.  We  have  the 
best  paid  teachers,  the  most  comfortable  struc- 
tures, and  an  army  of  scholars  who  are  reaping 
benefits  far  greater  than  ever  before  in  our 
history  and  far  greater  than  can  be  found  in  any 
other  country,  and  as  I  have  already  shown  we 
are  expending  for  education  40  per  cent  as  much 
as  all  the  other  countries  of  the  world  combined. 

The  Age  of-  Luxury.—  In  a  recent  num- 
ber of  Leslie's  Weekly  Francis  Curtis  has  an 
article  under  the  caption  "  The  Age  of  Luxury." 
The  term  is  most  fit  and  the  picture  so  true  that 
I  want  to  quote  from  the  article  as  follows : 

We  have  had  our  iron  age  and  our  age  of  steel. 
Cotton  has  been  king.  Cora  and  wheat  have  both 
sat  on  the  throne.  Time  was  when  there  was 
"nothing  like  leather,"  and  even  the  American 
hog  has  ruled  abroad  as  well  as  at  home.  Elec- 
tricity has  worn  the  crown,  and  one  after  another 
of  our  productions  has  for  a  time  held  sway,  giv- 
ing place  to  some  industrial  rival,  till,  instead 
of  any  one  being  supreme,  we  are  foremost  with 
many. 

So  at  this  beginning  of  a  new  century  we  live 
in  an  age  as  foreign  to  that  of  our  fathers  as 
steam  and  electricity  compare  with  sail  and 
candle.    Well  may  we  call  it  the  age  of  luxury. 

It  would  be  difficult  indeed  to  define  luxury  as 
found  in  the  United  States,  or  to  draw  the  line 
between  luxury  and  necessity.  Many  of  the  things 
which  we  have  become  accustomed  to  class  among 
the  necessaries  of  life  are  thought  of  abroad  as 
luxuries,  or  are  not  enjoyed  at  all.  We  might  (but 
think  we  cannot)  do  without  a  thousand  and  one 
comforts  and  conveniences  which  our  fathers 
would  have  considered  extravagant  and  unneces- 
sary. In  our  homes,  at  our  offices,  on  our  travels, 
at  every  turn  of  life,   we  enjoy  luxuries  innu- 


now  have  our  morning  and  evening  daily,  our  illus- 
trated, religious,  and  other  weeklies,  and  one  or 
more  monthly  magazines.  We  have  our  luxuries 
in  food  and  our  luxuries  in  dress.  Even  the  dolls 
of  our  children  are  better  dressed  and  have  more 
"things"  than  did  our  grandparents  themselves 
when  children.  Our  homes  are  filled  with  luxu- 
rious furniture  and  bric-a-brac,  our  tables  are  set 
with  costly  china  and  glassware,  and  our  rooms 
are  hung  with  the  rarest  pictures  and  curtains. 
Our  offices  are  equipped  with  easy  chairs  and 
rugs,  with  open  bookcases  and  desks,  wuth  tele- 
phone and  mail-chutes.  Our  railroad,  parlor, 
sleeping,  and  dining  cars  are  luxurious  in  every 
detail,  and  our  hotels  are  palaces  from  entrance 
to  roof. 

Milady's  gowns  and  wraps  and  lingerie  and 
gloves  and  handkerchiefs  are  fit  for  any  queen, 
and  every  daughter  is  a  princess  in  wealth  of  ap- 
parel and  comforts.  In  amusement  there  is  no 
limit  to  luxury.  Millions  and  hundreds  of  millions 
are  annually  spent  at  the  theater,  on  yacnting, 
golf,  football,  receptions,  dinners,  teas,  and  balls. 
We  have  our  pianos,  our  phonographs,  our  automo- 
biles, our  bicycles,  and  our  carriages  for  adult, 
baby,  and  doll.  We  have  our  sealskins  and  furs, 
our  silks  and  satins  and  fine  linen,  our  feathers 
and  boas,  our  velvets  and  laces,  our  paintings  and 
vases,  our  hand-painted  ware  and  ornaments,  our 
diamonds  and  rubies  and  pearls,  our  watches  and 
clocks,  our  sweets  and  perfumes.,  and  so  on  ad 
infinitum.  ... 

We  spend  over  a  billion  a  year  in  drink,  out- 
side of  tea  and  coffee;  we  spend  over  half  a 
billion  in  tobacco  and  a  quarter  of  a  billion  in 
confectionery,  fruit,  and  flowers.  It  is  estimated 
that  our  present  annual  bill  for  luxuries  exceeds 
$10,000,000,000.  And  only  half  a  century  ago  our 
fathers  would  have  been  amazed  at  even  the 
thought  of  such  expenditures  and  would  have 
termed  it  folly. 

And  yet  the  making  and  production  of  these 
luxuries  form  the  basis  of  much  of  our  prosper- 
ity, and  in  turn  it  is  our  prosperity  that  enables 
us  to  enjoy  such  comfort  and  luxury.  We  would 
hardly  want  to  go  back  to  the  days  of  Jefferson 
and  Hamilton  and  Franklin,  or  even  to  the  days 
of  Lincoln  and  Seward.  So  here  is  to  the  age  of 
luxury,  and  may  it  be  but  a  beginning  of  a  still 
higher  plane  of  moral  living  and  a  still  greater 
enjoyment  of  the  noblest  things  of  life. 


Looking-  Southward.— If  there  still  re- 
mains any  section  of  our  common  country  whose 
merabie.  (people  clinf  to  the  traditions  of  the  past  and 

iutMd  of  the  oM-time  one  weekly  paper,  we  \  decline  to  re  ogafee  ti»  fact  mi  the  km  of  ft* 


28 


present,  let  us  hope  that  they  will  turn  their 
faces  to  the  great  light  of  to-day,  the  light  of 
splendid  progress  and  prosperity.  They  should 
forget  and  remember  —  forget  that  they  were 
for  a  brief  period  alienated  from  sympathy  and 
good  will  toward  neighbors  and  friends,  and 
remember  that  all  past  differences  have  been 
wiped  off  the  record  and  that  they  now  stand 
with  all  the  'people  upon  the  exalted  ground  of 
mutual  patriotism. 

They  may  well  forget  that  they  have  been  free 
traders  for  nearly  three-quarters  of  a  century, 
and  remember  that  their  great  apostle  in  eco- 
nomic doctrine  abandoned  protection  only  be- 
cause he  believed  that  the  control  of  the  world's 
supply  of  a  great  agricultural  staple  placed  the 
producers  of  that  staple  in  the  enviable  position 
of  being  able  to  sell  in  the  dearest  and  buy  in 
the  cheapest  of  markets  with  advantage  and 
profit.  He  did  not  foresee  the  tremendous  pos- 
sibilities connected  with  an  industrial  develop- 
ment that  under  protection  was  to  convert  this 
raw  product  into  finished  material  at  home,  sav- 
ing ocean  transportation  charges  across  and 
back,  and  involving  the  investment  of  home 
capital,  the  employment  of  home  labor,  and  the 
payment  of  home  wages.  He  could  not  foresee 
the  tremendous  unearthing  of  buried  treasure  in 
the  iron  mines  that  under  the  Dingley  tariff  was 
to  follow  the  establishment  of  a  gigantic  produc- 
ing industry  upon  the  firm  and  enduring  basis 
that  only  protection  could  provide. 

None  of  these  tremendous  possibilities,  now 
accomplished  facts,  were  present  in  the  mind  of 
Calhoun  when  he  shifted  from  protection  to  free 
trade,  otherwise  he  would  not  have  shifted.  So 
I  say  to  our  friends  and  neighbors  to  the  south- 
ward, "  Forget  that  you  were  free  traders,  and 


doing,  and  stands  to  do  for  you."  Signs  are  not 
wanting  that  they  are  forgetting  and  that  they 
are  remembering.  A  little  time  may  be  needed 
to  complete  the  process  of  reversion,  but  I  am 
thankful  to  believe  that  they  are  on  the  right 
track  and  not  long  hence  will  plant  their  feet 
alongside  of  ours  on  the  solid  rock  of  protection 
to  American  labor  and  industry. 

Conclusion. — Mr.  President,  I  have  pre- 
sented briefly  many  of  the  material  benefits 
which  we  as  a  nation  and  as  a  people  have  de- 
rived from  the  operation  of  the  Dingley  tariff. 
But  I  have  by  no  means  told  the  whole  story. 
We  can  estimate  the  production  and  consump- 
tion of  the  necessaries  and  luxuries  of  life,  but 
the  comforts  and  contentment  and  happiness  of 
the  American  home  is  inestimable.  How  can  we 
calculate  the  joy  of  the  farmer  or  mechanic  in 
being  able  to  give  his  sons  a  college  education? 
How  can  we  calculate  the  pleasure  of  taking  home 
the  latest  book ;  of  taking  the  wife  or  sweetheart 
to  the  play  or  concert ;  of  buying  the  piano  for 
the  daughter  ;  of  filling  the  vase  with  flowers ; 
of  taking  home  the  candy  and  toys  for  theiittle 
ones  ?  Why,  it  is  Christmas  the  year  round  in 
millions  of  American  homes.  The  birthdays  are 
joyful  days.  The  summer  trips  to  the  mountains 
and  seashore  and  country  in  vacation  time  are 
not  to  be  measured  by  dollars  and  cents  in  the 
happiness  and  health  they  give  to  millions  of 
wives  and  children. 

No,  Mr.  President,  there  is  no  computing  the 
blessings  and  benefits  of  protection.  We  cannot 
measure  happiness  by  the  yard  or  pound  or  quart 
or  dollar's  worth,  but  we  can  produce  it  and  en- 
hance it  and  continue  it  by  continuing  protection 
and  prosperity.  I  met  an  old  farmer  recently,  a 
sterling  old  man  who  voted  for  Franklin  Pierce 


try  to  remember  what  protection  has  done,  is  I  and  who  has  voted  for  every  Democratic  candidate 


29 


for  President  and  Congress  since.  I  asked  him, 
"  Well,  how  is  the  farm  ?"  Without  answering, 
he  said,  "  Senator,  I  want  to  tell  you  something. 
I  am  going  to  vote  the  Republican  ticket  next 
fall  and  in  1904  and  as  long  as  I  live."  "  Why, 
how  is  that  ? "  I  asked.  He  replied  :  "  Simply 
because  I  am  tired  of  voting  against  pros- 
perity." 

There  is  the  whole  thing  in  a  nutshell.  Not 
only  the  truck  farmer  of  New  England,  but  the 
Wheat  grower  qf  Minnesota,  the  corn  grower  of 
Kansas,  the  sugar  grower  of  Louisiana,  the  cot- 
ton planter  of  Georgia,  back  to  the  wool  grower 
of  Ohio  and  the  tobacco  planter  of  Virginia  and 
Connecticut,  way  to  the  fruit  grower  of  Califor- 
nia —  the  capitalist,  the  millworker,  the  railroad 
hand,  the  merchant  and  clerk,  the  professional 
man  —  every  one,  from  the  most  elevated  posi- 


tion to  the  humblest  —  must  vote  for  or  against 
prosperity. 

And  right  here  let  me  quote  again  from  Mr. 
Gowles's  address : 

A  wise  wag  once  said  in  response  to  the  toast, 
"  Here's  to  your  prosperity.  May  you  stand  it 
like  a  man."  **  That's  a  better  sentiment  than 
you  think  it  is,"  said  he.  "  It  takes  a  clever  man 
to  stand  prosperity.  Any  fool  can  stand  advers- 
ity; he  has  to." 

Our  friends  on  the  other  side  are  looking  for 
an  issue.  They  need  not  worry,  the  issue  is 
looking  for  them.  Prosperity  is  the  issue,  and 
all  other  questions  are  secondary.  The  American 
standard  of  living,  American  manhood  and  Amer- 
ican homes  are  but  the  resultants  of  Republican 
legislation,  the  sequences  of  a  protective  tariff 
which  brought  to  us  and  will  continue  to  give  us 
an  unprecedented  age  of  luxury,  an  unparalleled 
era  of  prosperity, 


INDEX 


PAGE 

AGE  of  Luxury    27 

Agriculture   4,  5 

Agricultural  prices   22 

Comparison  of  size  and  value  of 
our  farm  products  during  1896 

and  1901   5 

Effect  of  these  immense  earnings 

upon    ^ 

Exports  of   6 

A  Protective  Tariff  insures  the 

farmers   .  . .   6 

Tariff  much  to  do  with  value  of 

crops    ,   ^ 

What  made  the  increase  in  values  5 

Astounding  Statistics    24 

Average  Rate  of  Duty   19 

Wilson-Gorman  and  Dingley  rates- 
compared    19 

Average  duty  per  capita   20 

BANK  Clearances   13 

During  the  Free-Trade  and  Pro- 
tective periods   13 

Savings  banks  deposits   15 

Beet  Sugar   1° 

Number  of  factories    10 

Production  of   1° 

CITATIONS. 

Orange  Judd  Farmer    5 

Senator  Warren   7 

Iron  and  Steel  Association   9 

Poor's  Manual   _.  •  H 

Interstate  Commerce  Commission  11 

Dun's  Review  19,  22 

T.  Z.  Cowlesr  23,  29 

Secretary  of  the  Treasury   23 

American  Economist   25,  26 

r    Francis  Curtis  in  Leslie's  Weekly  27 

President  McKinley   3 

New  York  Insurance  Report  ...  16 

Conclusion  28,  29 

DINGLEYISM,  Result  of   4 

Dingley  Law, 

An  unqualified  success  3,  28 

Exports  of  manufactures  under.  .  8 

Our  progress  under   24 

Per  Capita  Statistics   20,  21 

Prices  under  •  21 

Rate  of  duty  under  -*i  19 

Vain*     crops  under  ..... . .  5 


EDUCATION    •   26 

General  conditions   27 

Child  Labor    26 

Employment  and  Earnings   4 

Earnings  lost  during  the  low  Tar- 
iff periods   4 

Employment  is  what  counts  ....  22 

Labor  statistics  of  Massachusetts  4 

Results  of  Dingleyism    4 

Samuel  Gompers'  estimate  on  men 

out  of  employment   4 

What  idleness  means   4 

Exports  of  Agriculture    6_ 

Exports  of  Gold  and  Silver   18 

Exports  of  Merchandise   17 

FAILURES   •   1° 

Foreign  Commerce   •  •  17 

Exports  double  the  amount  under 

the  Dingley  Tariff  ......  17 

Imports  and  exports  of  merchan- 
dise, 1890-1901   ,  17 

Leading  export  nation  of  the  world  17 

Our  balance  of  trade    17 


Why  our  imports  increase 


18 


Foreign  and  Home  Market  25,  26 

GALLINGER  Resolution,  The    3 

Gold  and  Silver                                 18,  19 

Total  value  of  imports  and  exports 
of  gold  and  silver  coin  and  bul- 
lion, 1893-1901    18 

Gold  in  the  Treasury   18 

HOME  Market   25 

Plow  we  compare  with  the  rest  of  the 

world    24 

Greatest  of  all  consumers'  . .  25 

Produce  two-thirds  as  much  as 

rest  of  the  world  . .   24 

IMPORTS  and  Exports  of  Gold  and 

Silver    18 

Imports  and  Exports  of  Merchandise, 

,1890-1901    17 

Insurance   1^>  17 

Low-Tariff  times  compared  with 

Protection  times   17 

Iron  and  Steel  Production  8,  9 

Rolled  iron  and  steel  gross  tons, 

1892-1901   9 

Wire  nails  in  kegs  of  100  pounds  9 


31 


PAGE  | 

LOOKING  Southward   27,  28 

Protection  and  the  South    27 

Luxury,  Age  of    27 

McKINLEY,  President,  on  the  need 

of  a  New  Tariff  Law   3 

McKinley,  President,  and  the  Passage 

of  the  Dingley  Law    3 

.  Manufactures    8 

Beet  Sugar  ,   io 

Comparison  of  pig  iron  production 

for  past  few  years    8 

Exports  advance  under  Dingley 

Tariff   9 

How  wages'  in  manufacturing  af- 
fect value  of  farm  products  ...  10 
Increase  in  establishments  during 

last  decade   8 

In  the  territories   10 

Iron  and  steel    8 

Manufacturing  output  in  certain 

industries,  1890-1900    8 

Tin  plate   9 

Massachusetts,  Labor  Statistics  of  . .  4 

Mineral  Products    10 

Comparison  between  1896-1901  . .  10 

NATIONAL  Finances   23 

Astounding  statistics    24 

Cash  fund  in  Treasury    23 

Estimated  surplus   23 

Our  debt  reduced  under  Protection  24 

Tariff  effect  on   23 

Uncle  Sam  not  borrowing  in  Pro- 
tection times*   23 

POST-OFFICE  Business   14 

Increased  under  Dingley  law  ....  14 
Postal  receipts  from  1889-1902.  .  14 

Prices  21  22 

Index  of  prices,  January  1   22 

Proportioned  to  consumption  ...  22 

Protection  and  .   22 

Wage-earner  and   23 

.  Prosperity  is  the  Issue   29 

(Prosperity,  tired  of  voting  against  ...  29 

-"RAILROAD  Business    11 

E      During  low  Tariff  and  Protection 

times   11 

I"     Effect  of  the  Tariff  11 
Freight  carried  on  the  railroads  of 

the  United  States   25 

Owners  of  railroads  ,  12 


PAGE 

and  earnings   11 

Revenue  3,  4 

More  than  sufficient    3 

Under  the  Dingley  law  .   3 

Under  the  Wilson-Gorman  law  .  .  3 

SAVINGS  and  Surplus   15,  16 

Average  to  each  depositor  in  a 

few  countries   16 

New  Hampshire's  experience  in 

the  matter   15 

Our  deposits  exceed  those  of  Great 
Britain,    France,    Russia  and 

Austria  combined   16 

Number  of  depositors  and  deposits 

from  1893  to  1902     15 

Sheep  and  Wool   6,  7 

Domestic  production  and  imports' 
under  the  Dingley  and  Wilson- 
Gorman  laws    6 

Prices  of  Ohio  fleece  wool   7 

Sheep  and  their  value   7 

Shipping  12,  13 

Vessels  built  and  total  tonnage  . .  13 
South,  Progress  and  Prosperity  in  .  .  27  28 

TELEGRAPH  and  Telephone  14,  15 

Comparison  of  annual  number  of 
telephone  messages  in  different 


countries   ....  15 

Increase  in  telephone  business  ...  15 

Postal  Telegraph  Co.'s  business  .  .  15 
Receipts'  of  the  Western  Union 

Telegraph  Co.  since  1889    14 

The  Age  of  Luxury   27 

The  Foreign  and  Home  Market  25,  26 

Amount  of  our  foreign  and  home 

sales   26 

Value  of  our  internal  commerce  .  .  26 

Tin  Plate    9 

Production  and  importation  of  .  .  9 

Toast  to  Prosperity   29 

Tobacco  Industry   7 

Condition  now  as  compared  with 

the  low-Tariff  times   7 

Production   and   consumption  in 

the  United  States    7 

WAGE  Earner  and  Prices  22,  23 

Wages  in  Manufacturing  affect  Value 

of  Farm  Products   10 

Wool  and  the  Tariff  6  7 


